Brazilian Lawmakers Set First Public Discussion on National Bitcoin Holdings
Brazil's Chamber of Deputies will hold its first public hearing on August 20, 2025, to examine creating a national Bitcoin reserve. According to Cointelegraph, at least six institutions will participate in the discussion, including the Central Bank of Brazil, the Ministry of Finance, crypto advocacy groups, and representatives from fintech companies and banking sectors.
The hearing will focus on Bill 4501/2024, introduced in November 2024 by Federal Deputy Eros Biondini. The legislation proposes allowing up to 5% of Brazil's treasury funds to purchase Bitcoin, representing a potential investment of roughly $15 billion based on the central bank's total reserves of approximately $300 billion as of February 2025. Federal Deputy Luiz Philippe de Orleans e Bragança formally requested the hearing when the bill reached the Economic Development Committee in June.
The proposal would require Brazil's executive branch to regulate the program within 180 days if passed. Officials managing the reserve would face criminal and administrative penalties for mismanagement. The Bitcoin holdings could also serve as backing for Brazil's central bank digital currency, Drex, according to the bill's provisions.
Why This Bitcoin Reserve Matters for Brazil
Brazil's potential Bitcoin adoption carries immediate economic implications for Latin America's largest economy. The proposed reserve aims to protect international reserves against exchange rate fluctuations and geopolitical risks, according to bill supporters. Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, stated that "Bitcoin is the digital gold" and debating a sovereign Bitcoin reserve is "vital to Brazil's prosperity."
However, resistance exists within Brazil's financial establishment. Central bank director of monetary policy Nilton David reportedly said including crypto assets in foreign exchange reserves would be inappropriate. This opposition reflects broader concerns about Bitcoin's price volatility affecting national reserves. Fortune reports that Fidelity expects countries avoiding Bitcoin allocation could face greater risks than those making investments, particularly given macroeconomic challenges like inflation and currency devaluation.
The hearing represents Brazil's most concrete step toward official Bitcoin adoption since the country became the first in the Americas to approve spot Bitcoin ETFs. We previously reported that Brazil already considers adding Bitcoin to national reserves, with the RESBit proposal gaining political momentum as cryptocurrency usage reaches 16% of Brazilian citizens. The current hearing will determine whether these preliminary discussions translate into formal policy.
Global Impact on National Bitcoin Reserve Movement
Brazil's hearing occurs amid a global shift toward government Bitcoin holdings, positioning the country among potential pioneers in sovereign cryptocurrency adoption. CoinEdition identifies the United States as holding 207,189 Bitcoins as of early 2025, primarily from law enforcement seizures, while President Trump established a Strategic Bitcoin Reserve through executive order in March 2025.
The Brazilian initiative could accelerate similar policies across emerging markets. El Salvador accumulated over 6,100 BTC through direct government purchases, though recent analysis suggests mixed results from the country's Bitcoin experiment, with The Economist noting more costs than benefits in March 2025. Bhutan quietly accumulated over 13,000 BTC through mining operations, representing nearly 30% of its GDP.
If Brazil's legislature approves the Bitcoin reserve, the country would join a select group of nations formally integrating cryptocurrency into sovereign financial strategies. Davis Wright Tremaine notes that strategic Bitcoin reserves could help countries diversify holdings and protect against excessive inflation, though critics argue the United States' dollar status makes additional reserves unnecessary. Brazil's decision will likely influence policy discussions in neighboring countries considering similar cryptocurrency integration measures.
