Brazil’s House of Representatives has scheduled a hearing for 20 August to review a bill that proposes creating a national Bitcoin reserve.
At least six key institutions will take part in the discussion, including the Central Bank of Brazil, the Ministry of Finance, crypto advocacy groups, fintech companies, and banks. The hearing aims to weigh the risks and benefits of using public funds to invest in cryptocurrency.
Bill Proposes $15 Billion Investment in Bitcoin
The bill, introduced in November 2024, seeks to allow the government to allocate up to 5% of the country’s treasury reserves to buy Bitcoin. Based on Brazil’s total reserves of around $300 billion as of February, this could mean an investment of up to $15 billion in the digital asset.
Supporters of the bill say a Bitcoin reserve could help protect Brazil’s international reserves against currency fluctuations and geopolitical tensions. The proposal also aims to promote the use of blockchain technology in both the public and private sectors.
Mixed Reactions from Government and Central Bank
Opinions on the bill are divided. Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, voiced strong support earlier this year.
“Debating the creation of a sovereign Bitcoin reserve is in the public interest and vital to Brazil’s prosperity,” Guerra said in a translated statement. “After all, Bitcoin is the digital gold, the gold of the internet.”
However, not all officials share the enthusiasm. Nilton David, the Central Bank’s director of monetary policy, reportedly expressed that it would be inappropriate to add crypto assets to Brazil’s foreign reserves.
Next Steps in the Legislative Process
If the House of Representatives passes the bill, it will move to the Senate for further consideration. From there, it would require approval or veto by President Luiz Inácio “Lula” da Silva.
The outcome of the August 20 hearing could be a key step in determining whether Brazil will become one of the first major economies to hold Bitcoin as a sovereign asset.
