DeutschThe Economic Policy Commission of the Brazilian Chamber of Deputies is holding its first hearing today – August 20 – on draft law PL 4501/24. The aim: the possible establishment of a Strategic Bitcoin Reserve (RESBit) of up to US$18.6 to 19 billion, which corresponds to approximately 5% of Brazil’s international reserves.
What’s behind the Idea?
The draft law, introduced by Member of Parliament Eros Biondini in November 2024, aims to modernize Brazil’s financial policy and protect national currency reserves from exchange rate fluctuations and geopolitical risks. The plan envisages investing up to 5% of the reserves in Bitcoin – managed as a digital counterpart to gold.
Hearing and Participants
The public session was scheduled at the request of Member of Parliament Luiz Philippe de Orleans e Bragança to obtain technical assessments from government agencies, financial academics and crypto professionals. Experts include:
- Diego Kolling, Head of Bitcoin Strategy at Méliuz
- Julia Rosim, Head of the Policy Working Group at ABcripto and Head of Public Policy at Bitso.
Other institutions requested: Central Bank, Ministry of Finance, Abcripto (Crypto Association), FEBRABAN (Banking Association), as well as representatives from Fintech and business.
Objectives and Security Mechanisms
The draft mentions several design features for governance, security and transparency:
- Joint custody by the Central Bank and Ministry of Finance
- Semi-annual reports on the performance and risk assessment of the reserve
- Cold wallet storage for increased security
- Penal and supervisory measures in the event of mismanagement
Opportunities and Risks
Pro arguments advocate Bitcoin as protection against inflation and an instrument for currency diversification. Alongside El Salvador, Brazil could position itself as the first major country to use digital assets as a strategic reserve.
Skeptics warn of the high volatility of Bitcoin, security risks and opportunity costs. The central bank is cautious, while the vice president’s office supports the project and describes Bitcoin as “digital gold”.
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Legislative Procedure: the Path to a Decision
After today’s hearing, the motion will be forwarded to four committees:
- Economic development
- Science, Technology and Innovation
- Finance and taxation
- Constitution, Justice and Citizenship
Only after approval by all committees will the draft be put to a full vote and must then also pass the Senate and the President to become law.
Significance for Brazil and Beyond
With around US$76 billion in trading volume in the crypto market last year, Brazil is one of the top 10 crypto regions worldwide. The strategic reserve could set a global precedent and be a driver for other emerging markets.
Conclusion: Today’s hearing is a groundbreaking moment for Brazil and the entire industry: For the first time, a major state is publicly debating Bitcoin as an integral part of its currency reserves. The process is being closely monitored – both politically and economically. Let’s see whether the country actually dares to take the leap into digital financial policy.
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