Chamber of Deputies to Host First Debate on Bitcoin Reserves
Brazil is gearing up for a landmark debate on August 20, 2025, that could radically reshape the country’s fiscal strategy. Lawmakers will hold the first official public hearing on Bill 4.501/2024, which proposes the creation of a Sovereign Strategic Reserve of Bitcoin under the management of the Federal Government. The hearing will take place in the Chamber of Deputies in Brasília and be open to both experts and the general public.
Originally introduced by Deputy Eros Biondini in November 2024, and championed more recently by Deputy Luiz Philippe de Orleans e Bragança, the bill suggests that Brazil’s National Treasury diversify its holdings by acquiring Bitcoin and other secure cryptoassets. If passed, the legislation would direct 5% of Brazil’s foreign reserves—approximately $17 billion—into BTC.
Brazil’s Crypto Ambitions Grow Alongside Global Trends
If the plan moves forward, Brazil would leapfrog over countries like El Salvador, Bhutan, and even the U.K., becoming the world’s largest sovereign Bitcoin holder. With $341 billion in foreign exchange reserves, the proposed $17 billion BTC allocation would not only signal institutional trust in crypto but also reflect Brazil’s deepening embrace of digital finance.
This bold move aligns with Brazil’s 2023 legal framework empowering the central bank to oversee virtual asset service providers (VASPs) and giving regulatory authority to the Securities and Exchange Commission for tokens defined as securities. These actions laid a foundation for Brazil’s continued expansion into crypto-friendly regulation.
A Leader in the Americas’ Crypto Investment Scene
Brazil is already ahead of the curve in crypto finance, having approved spot cryptocurrency ETFs before most of the Americas. The country is home to several notable crypto investment vehicles, such as:
- HASH11 – the most traded ETF in Brazil
- FOMO11 – tracking crypto market sentiment
- DEFI11 – offering exposure to DeFi tokens
- Solana Spot ETF – authorized in August 2024, signaling strong support for altcoins
These developments have positioned Brazil as a regional crypto powerhouse, and the Bitcoin Reserve bill could be the final step in cementing its leadership.
Next Steps: From Hearing to Presidential Signature
Following the August 20 hearing, the Economic Development Commission will decide whether to pass the bill forward. If approved, it would then go to the full Congress, and eventually to the President’s desk for final approval.
While Brazil’s Bitcoin reserve proposal is the first of its kind in the region, it's part of a broader global trend. The U.S. Treasury’s Digital Assets Director, Bo Hines, has recently hinted at similar discussions within the United States regarding a potential strategic Bitcoin reserve.
El Salvador Sets the Precedent
Brazil’s potential adoption would follow in the footsteps of El Salvador, which made Bitcoin legal tender in 2021 and began a daily BTC acquisition strategy. Despite controversy, the Salvadoran government has reportedly earned substantial profits and remains committed to the strategy.
