Bitcoin News Today: Brazil Considers Bitcoin as Strategic Hedge Against Global Volatility

Brazil’s Chamber of Deputies Economic Development Commission will convene its first public hearing on August 20 to evaluate a proposed Bitcoin Strategic Reserve (RESBit) valued at up to $18.6 billion. The session, requested by Deputy Luiz Philippe de Orleans e Bragança, aims to gather expert input from financial institutions, government officials, and industry representatives. The initiative, outlined in Bill 4501/24, seeks to modernize Brazil’s treasury management and diversify its foreign reserves to mitigate risks from exchange rate volatility and global geopolitical uncertainties [1].

Confirmed speakers at the hearing include Diego Kolling, head of Bitcoin strategy at Méliuz, and Julia Rosim, ABcripto policy working group coordinator and head of public policy at Bitso. The bill introduces a framework in which Brazil’s Central Bank and Ministry of Finance would jointly manage the reserve, with biannual reports on performance and risk assessments. The structure is intended to prevent centralized control and enhance transparency in the management of digital assets [2].

Brazil’s cryptocurrency market has already demonstrated strong growth and adoption, ranking first in Latin America and 10th globally according to Chainalysis’ 2024 Geography of Crypto report. The country’s trading volume in digital assets reached nearly $76 billion last year, underscoring its increasing influence in the global crypto ecosystem. The RESBit proposal aligns with a broader trend of countries exploring digital assets as part of their strategic reserves, including El Salvador, the United States, and the European Union [3].

If approved, the bill will undergo multi-stage scrutiny. After the August 20 hearing, it must clear four committees: Economic Development, Science and Technology, Finance and Taxation, and Constitution and Justice. Each committee must approve the bill before it can proceed to the full Chamber of Deputies for a vote. Following that, it will require Senate approval and final presidential endorsement. The August hearing is the first step in a complex legislative review process [4].

The proposal reflects Brazil’s growing comfort with cryptocurrency integration, evidenced by its rapid adoption of crypto ETFs and regulatory advancements. While the initiative is not framed as an endorsement of Bitcoin’s speculative value, it is presented as a strategic hedge against traditional currency risks and a step toward aligning with global financial trends. The hearing will serve as a critical test of the proposal’s viability and the political will to advance it through multiple legislative stages [5].

Source:

[1] Brazil to Hold Hearing on $18.6 Billion Bitcoin Reserve Proposal (https://cryptoslate.com/brazil-to-hold-first-hearing-on-proposed-19-billion-bitcoin-strategic-reserve/)

[2] Brazil to Hold Hearing on $18.6 Billion Bitcoin Reserve ... (https://cryptodnes.bg/en/brazil-to-hold-hearing-on-18-6-billion-bitcoin-reserve-proposal/)

[3] Brazil Debates $19 Billion Bitcoin Strategic Reserve (https://99bitcoins.com/news/bitcoin-btc/brazil-debates-19-billion-bitcoin-strategic-reserve/)

[4] Brazil to Hold First Hearing on Establishing a National ... (https://www.bitget.com/news/detail/12560604918966)