$BTC The Brazilian government has proposed a bill that will greenlight the national Bitcoin reserve.

According to the law submitted on November 25, 2024, the Sovereign Strategic Reserve of Bitcoins (RESBit) will account for 5% of Brazil's international reserves. This bill aims to diversify the assets of the Brazilian Treasury.

Incorporating Bitcoin into the Treasury "will mitigate Brazil's risks from exchange rate fluctuations and geopolitical risks, increasing economic resilience," said Federal Deputy Eros Biondini in the proposed bill.

Under the proposal, the Central Bank of Brazil will manage the Bitcoin reserve through a partnership with the Ministry of Finance. These funds will be used to support Brazil's CBDC, known as Drex. According to the bill, Bitcoin will be stored in a hardware wallet.