Bitcoin News Today: Brazil Considers Storing Sovereign Wealth in Bitcoin, Sparking Debate Over Digital Gold

Brazil’s Chamber of Deputies Economic Development Commission will hold its first public hearing on August 20, 2025, 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 technical and strategic input from financial institutions, government agencies, and industry experts on Bill 4501/2024. The bill seeks to modernize Brazil’s treasury management and diversify sovereign assets by allocating up to 5% of international reserves into Bitcoin, a move intended to hedge against currency volatility and geopolitical risks [1].

The proposed legislation has drawn comparisons to the blockchain integration efforts of countries such as El Salvador, the United States, and the European Union. Under the plan, Brazil’s Central Bank and Finance Ministry would share custody of the reserve, with the requirement for biannual performance and risk assessments. This framework emphasizes oversight and transparency, addressing potential concerns over the management of digital assets in a national context [2].

Brazil has emerged as a leading market in Latin America for cryptocurrency adoption and ranks 10th globally in crypto use, according to the Chainalysis 2024 Geography of Crypto report. In 2024, the country processed nearly $76 billion in digital asset transactions, as reported by the Brazilian tax authority. This significant level of engagement with cryptocurrencies highlights the nation’s growing comfort with digital assets and its potential readiness to integrate them into sovereign financial strategies [3].

The August 20 hearing will include participation from Diego Kolling, head of Bitcoin strategy at Méliuz, and Julia Rosim, ABcripto policy working group coordinator and Bitso head of public policy. These experts, alongside officials from the Central Bank and Ministry of Finance, will provide key insights into the feasibility and risks of the RESBit initiative. Deputy Bragança emphasized the need for Central Bank input prior to committee reviews, a step he believes is crucial to refining the legislative proposal [4].

Following the initial hearing, the bill will undergo a multi-stage approval process. It must pass through four legislative committees—Economic Development, Science and Technology, Finance and Taxation, and Constitution and Citizenship—before moving to a full Chamber vote. If successful, it will then proceed to the Senate for final approval. The legislation, if enacted, would represent a significant shift in Brazil’s approach to financial reserves and could influence broader Latin American policy developments [5].

The move has generated a range of perspectives within Brazil’s financial community. Some officials, such as Pedro Giocondo Guerra, have endorsed the initiative, comparing Bitcoin to “digital gold,” while others, like Nilton David from the Central Bank, have voiced concerns about the viability of holding cryptocurrency in national reserves. Security provisions in the bill, including cold storage for Bitcoin holdings and penalties for mismanagement, aim to address these concerns and ensure accountability [6].

Source:

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

[2] Brazil Considers $19B Bitcoin Strategic Reserve Legislation (https://bitbo.io/news/brazil-bitcoin-reserve-hearing/)

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

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

[5] Brazil Sets Historic Bitcoin Reserve Hearing as South America Leads Crypto Revolution (https://en.mercopress.com/2025/08/19/brazil-sets-historic-bitcoin-reserve-hearing-as-south-america-leads-crypto-revolution)

[6] Brazil to Hold First Hearing on Establishing a National Strategic Bitcoin Reserve Tomorrow (https://www.bitget.com/news/detail/12560604918966)