Brazil to Hold First Public Hearing on Bitcoin Reserve Bill
Brazil’s Chamber of Deputies will hold its first public hearing on August 20, 2025, for Bill 4.501/2024 to establish a sovereign Bitcoin reserve. Lawmakers aim to diversify national treasury assets beyond US Treasuries and hedge against currency fluctuations and inflation. The session in Brasília will gather over a dozen institutions, including Abcripto, the Central Bank, the Finance Ministry and experts like Febraban’s economist Rubens Sardenberg and Méliuz’s Diego Kolling. Proponents highlight blockchain innovation and an inflation hedge. Critics warn of Bitcoin’s high volatility and unclear accounting rules. If approved, Brazil would join US states like Texas in holding public Bitcoin reserves.
Bullish
The announcement of a formal public hearing on a sovereign Bitcoin reserve bill signals growing institutional interest and potential government-level adoption. In the short term, this could boost market sentiment for BTC as traders anticipate increased demand and regulatory clarity. Long term, if the bill passes, Brazil’s move to diversify reserves with Bitcoin may set a precedent for other nations, underpinning sustained upward pressure on price and broader acceptance.