Brazil to Conduct Initial Hearing on $19 Billion Bitcoin Strategic Reserve
The Chamber of Deputies in Brazil is preparing to conduct its inaugural hearing on August 20 to discuss legislation aimed at establishing a BTC Strategic Reserve. This reserve could potentially amount to $18.6 billion and represents a significant move towards transforming the way Brazil approaches foreign reserves and economic stability.
Hearing Emphasizes Risk Management and Diversification of Reserves
The proposed Bill 4501/2024 advocates for the allocation of up to 5 percent of Brazil’s Treasury reserves in BTC, positioning it as a safeguard against currency fluctuations and as a proactive measure against escalating geopolitical threats. Supporters of the initiative argue that this is not merely a wager on BTC, but rather a strategy to brace for a financial landscape that diverges greatly from Brazil’s historical plans.
Brazil’s Congress is set to deliberate on the establishment of a strategic BTC reserve.
A landmark advancement for Brazil in the international crypto arena.#Brazil #Bitcoin #CryptoNews pic.twitter.com/BqgAnmuVa5— KaKá Santana (@kakasantana) August 20, 2025
Industry Experts to Offer Insights
This hearing goes beyond mere political procedure. Deputy Luiz Philippe de Orleans e Bragança initiated the hearing and has invited a diverse array of experts to provide their perspectives. Diego Kolling, who oversees BTC strategy at Méliuz, and Julia Rosim from Bitso and ABCripto will participate. Additionally, representatives from Brazil’s Central Bank and Ministry of Finance will contribute, indicating that the discussion encompasses more than just cryptocurrency; it also involves financial strategy.
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Bitcoin Would Be Managed Under Joint Custody
Should the bill pass, the BTC reserve would be jointly managed by both the Central Bank and the Ministry of Finance. The proposal is crafted to prevent consolidated control and introduce an additional level of supervision. It also mandates biannual reports detailing the reserve’s performance and risks, providing lawmakers and the public with better visibility on the progress of this initiative.
Future Steps Require Multiple Approvals
After this hearing concludes, the legislation will still have several hurdles to clear. It must be approved by four essential committees: Economic Development, Science and Innovation, Finance and Taxation, and Constitution and Justice. If it passes these evaluations, it will proceed to a full House vote, then to the Senate, and ultimately to the President for final endorsement. The hearing on August 20 is only the initial challenge.
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Brazil Is Already Embracing Crypto
Brazil is building on a solid foundation. It ranks among the most vibrant crypto markets in Latin America and has swiftly approved crypto ETFs. Last year, trading volumes approached $76 billion, and the country is well-regarded in global adoption rankings. Incorporating BTC into its national reserves would be a bold, yet fitting, progression.
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Key Takeaways
- Brazil is commencing its initial official hearing regarding a plan to include up to $18.6 billion in BTC within its national reserves.
- Bill 4501/2024 seeks to allocate a maximum of 5% of Brazil’s Treasury reserves towards Bitcoin to mitigate currency and geopolitical risks.
- The hearing on August 20 will include participants from both the crypto industry and traditional financial sectors, including the Central Bank and Ministry of Finance.
- The proposed reserve would be co-managed by the Central Bank and the Ministry of Finance, with regulations ensuring oversight and public transparency.
- Brazil’s current level of crypto adoption is substantial, making the notion of a Bitcoin Strategic Reserve both ambitious and in line with its character.
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