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    Brazilian Congressman proposes RESBit, a Bitcoin reserve to stabilize national currency and enhance digital asset regulation

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    Brazilian Congressman Eros Biondini has proposed creating a Bitcoin Reserve, RESBit, as a safeguard against fluctuations in the value of regular currency and external influences. This reserve, which would not replace other national assets, would have a cap of 5% of the total reserve value and be managed by the central bank. Inspired by El Salvador’s adoption of Bitcoin, Brazil’s proposal forms part of the nation’s efforts to improve regulation of digital assets. The proposal is currently under review and potential mismanagement of RESBit could result in penalties.

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    Brazil’s Congress is thinking about starting a national Bitcoin stash. Congressman Eros Biondini threw the idea into the ring on Nov. 25, suggesting the creation of a Bitcoin Reserve, nicknamed RESBit.

    It’s like this: if Brazil has its own Bitcoin savings, it’s less vulnerable to changes in the value of regular currency and outside influences. Plus, it could use the Bitcoin reserve as backup for its upcoming digital currency, called Drex.

    Now, this Bitcoin Reserve wouldn’t replace other assets the nation has in its money pot – stuff like dollars and the like. Brazil had a whopping $355 billion in these reserves by the end of 2023. This Bitcoin stash would just be an added safety net, capped at 5% of the total reserve value. And the country’s central bank would still be in charge, keeping an eye on everything using blockchain tech and artificial intelligence, with a group of security experts on standby.

    The bill took a leaf out of El Salvador’s book, which started accepting Bitcoin as legal money next to the US dollar in 2021, helping their economy in the process. They even bought more Bitcoin and now have nearly 6,000 BTC (worth about $542 million).

    If Brazil’s bill gets the green light, people who don’t stick to the rules or mismanage the RESBit could face penalties. It’s currently under review by Brazil’s House Speaker. If they approve it, it’ll be up for debate in the committees.

    This fits into Brazil’s move to regulate digital assets better. In June 2023, it introduced legislation that allows its central bank to watch over virtual asset service providers. Similarly, any tokens that count as securities are overseen by Brazil’s Securities and Exchange Commission.

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