Brazil's Proposed $17B Bitcoin Reserves: Historic Ambition or questionable move?
Brazil is set to make a significant move in the world of cryptocurrency, as plans to form a national Bitcoin reserve have been proposed. If passed, the South American country could become one of the world's largest government holders of Bitcoin, surpassing nations like El Salvador.
The bill, known as Bill 4501/2024, was put forward by pro-crypto legislator Eros Biondini in November 2024. If approved, it would allocate up to 5% of Brazil's international reserves, approximately $15–17 billion, into Bitcoin as a strategic reserve asset. The bill is scheduled for a public hearing in Brazil's lower house on August 20, 2025.
The proposed Sovereign Strategic Bitcoin Reserve (RESBit) would be managed jointly by Brazil’s Central Bank and Ministry of Finance. Bitcoin would be gradually purchased and stored securely in cold wallets to mitigate risks. The goals of the bill include protecting Brazil's reserves from currency fluctuations and geopolitical risks, pushing the country forward in digital finance innovation, supporting Brazil’s central bank digital currency (CBDC), Drex, promoting blockchain education and adoption, and strengthening Brazil’s position as a leader in crypto adoption within South America and globally.
Key proponents, including Vice President Geraldo Alckmin’s chief of staff, Pedro Giocondo Guerra, call Bitcoin "digital gold" and emphasize its importance for the country’s future wealth. However, some officials, such as Brazil’s Central Bank monetary policy director Nilton David, oppose including crypto in official reserves, citing concerns about appropriateness and risk.
Should the bill pass, Brazil would position itself as the largest state holder of Bitcoin globally, potentially increasing institutional and public confidence in cryptocurrencies, encouraging growth of blockchain-related businesses and fintech innovation locally, and introducing regulatory and security frameworks for managing digital assets at a sovereign level.
The debate is ongoing, reflecting contrasting views on whether this move is historic and visionary or inappropriate and risky for national reserves. The upcoming August 20 hearing is intended to allow experts, institutions, and lawmakers to present arguments for and against the bill.
The idea of state-held Bitcoin reserves is gaining momentum globally. U.S. states like New Hampshire, Arizona, and Texas have already passed similar bills for state-held Bitcoin reserves. Nations like Pakistan, India, and Sweden are reportedly exploring similar initiatives. Proponents argue that such a move could hedge against inflation and modernize Brazil's financial strategy.
The outcome of Brazil's decision in the coming weeks could significantly influence the future of national crypto adoption on the world stage. The upcoming public hearing will be open to both industry experts and the public, with key stakeholders, including the Central Bank, the Ministry of Finance, fintech firms, and crypto advocates, expected to weigh in on the proposal.
- If Brazil passes Bill 4501/2024, it could surpass countries like El Salvador to become one of the world's largest government holders of Bitcoin, using the cryptocurrency as part of its strategic reserve assets.
- The proposed Sovereign Strategic Bitcoin Reserve (RESBit) would see Bitcoin purchased and securely stored in cold wallets, jointly managed by Brazil's Central Bank and Ministry of Finance, with the goal of protecting Brazil's reserves from currency fluctuations and geopolitical risks.
- Should the bill pass, Brazil would join a growing list of countries exploring cryptocurrency adoption, following in the footsteps of US states like New Hampshire, Arizona, and Texas, as well as nations like Pakistan, India, and Sweden.
- The public hearing on August 20, 2025, will provide an opportunity for experts, institutions, and lawmakers to present arguments for and against the bill, discussing the potential benefits of introducing a national Bitcoin reserve, such as hedging against inflation and modernizing Brazil's financial strategy, as well as concerns about appropriateness and risk.
