Brazil Debates $17B Bitcoin Reserve to Become Top BTC Holder

Brazil’s Chamber of Deputies will hold a public hearing on August 20 to debate PL 4501/2024, a bill proposing a sovereign Bitcoin reserve. It seeks to allocate 5% of the nation’s $341 billion foreign exchange reserves—about $17 billion—into Bitcoin to diversify assets and hedge against inflation. Introduced by legislator Eros Biondini in November 2024, the proposal reflects a broader trend of sovereign adoption of digital assets. Key stakeholders—Central Bank, Ministry of Finance, fintech firms and crypto advocates—will discuss the fiscal impact, market stability and regulatory framework of a Bitcoin reserve. Supporters, including Vice President Alckmin’s chief of staff Pedro Giocondo Guerra, praise Bitcoin as “digital gold.” Central Bank policy director Nilton David cautions that adding crypto to FX reserves could be “inappropriate.” If passed, Brazil would become the world’s largest sovereign Bitcoin holder, surpassing El Salvador and the UK. The hearing’s result will determine whether the bill advances to the Economic Development Commission and, ultimately, to Congress and the President. Similar initiatives are underway in U.S. states like Texas and Arizona, and countries including Kazakhstan, Pakistan, India and Sweden.