Brazil dey debate $17B Bitcoin Reserve to become top BTC holder
Brazil Chamber of Deputies go hold public hearing for August 20 to discuss PL 4501/2024, dis bill wey propose make dem get sovereign Bitcoin reserve. E wan put 5% of di country foreign exchange reserves wey be $341 billion—about $17 billion—inside Bitcoin to diversify assets and protect against inflation. Legislator Eros Biondini start dis proposal for November 2024. E follow di trend wey countries dey adopt digital assets.
Key people dem like Central Bank, Ministry of Finance, fintech companies and crypto supporters go discuss di money side, market stability and di regulation of Bitcoin reserve. People wey support am, including Vice President Alckmin’s chief of staff Pedro Giocondo Guerra, praise Bitcoin as “digital gold.” Central Bank policy director Nilton David warn say e go fit no good to add crypto join FX reserves.
If dem pass am, Brazil go be di biggest sovereign Bitcoin holder for di world, pass El Salvador and UK. Di hearing result go determine if di bill go waka go Economic Development Commission and, at last, to Congress and di President. Similar moves dey happen for US states like Texas and Arizona, and countries like Kazakhstan, Pakistan, India and Sweden.
Bullish
Dis news good for BTC. For short term, di debate about $17 billion Bitcoin reserve fit make market feel good by show say big institutions get serious interest and maybe new buying pressure go come. Traders fit expect more demand if di bill move forward, ehin price fit go up. For long term, if di sovereign Bitcoin reserve work well, e go prove say Bitcoin na real store of value and go make e fit enter national portfolios faster. If Brazil become di biggest sovereign holder, e fit make other countries follow, e go make Bitcoin liquid well well and e fit reduce how price dey waka waka with time. But traders suppose dey watch how di bill dey go and regulation talks well to know if e fit delay or policy fit change.