Brazil’s House of Representatives is set to hold a key hearing on August 20, where lawmakers will debate a groundbreaking proposal to create a national Bitcoin reserve. The bill, introduced in late 2024, could position Brazil among the few nations actively investing government reserves into digital assets.
Proposal Allows Up to 5% of Reserves in Bitcoin
The proposed legislation seeks to allocate up to 5% of Brazil’s treasury reserves into Bitcoin (BTC). Based on the country’s estimated $300 billion in total reserves, this would represent a potential investment of around $15 billion.
The goal is to shield Brazil’s international reserves from currency fluctuations and geopolitical uncertainty.
The bill also aims to boost the adoption of blockchain technologies across both public and private sectors, enhancing Brazil’s strategic positioning in the emerging digital economy.
Central Bank, Finance Ministry to Participate
At least six institutions will participate in the August 20 hearing, including:
- The Central Bank of Brazil
- The Ministry of Finance
- A major crypto advocacy group
- Fintech leaders and private sector banks
This inclusive approach signals a multi-stakeholder dialogue as Brazil weighs the role of cryptocurrencies in national monetary strategy.
Divided Opinions on Bitcoin’s Role in Reserves
The proposal has sparked debate among policymakers. Supporters, like Pedro Giocondo Guerra from the Vice President’s office, argue that “Bitcoin is digital gold” and should be seen as a strategic reserve asset.
However, Central Bank officials remain cautious. Director of Monetary Policy Nilton David expressed concern over the volatility of crypto, saying it would be inappropriate to classify it within the country’s foreign exchange reserves.
Global Trend: Brazil Joins Bitcoin Reserve Debate
Brazil isn’t alone in this movement. In 2025, the United States, Kazakhstan, and El Salvador have all taken steps to either create or expand national Bitcoin reserves. There’s also rising speculation about similar intentions in India and Sweden.
If the Brazilian House passes the bill, it must still clear the Senate and be signed by President Lula da Silva to become law.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.