Bitcoin News Today: Brazil Eyes Bitcoin Reserve to Hedge Against Global Volatility

Brazil’s Chamber of Deputies is set to hold a public hearing on August 20 to evaluate a proposal for the establishment of a Bitcoin Strategic Reserve (RESBit), valued at up to $18.6 billion [1]. The initiative, outlined in Bill 4501/24, seeks to modernize Brazil’s treasury management and enhance its resilience to exchange rate volatility and geopolitical risks [2]. The bill was introduced by lawmaker Eros Biondini, who cited the adoption of blockchain-based financial structures in countries such as El Salvador, the United States, China, Dubai, and the European Union [3]. Under the proposed framework, Brazil’s Central Bank and Finance Ministry would manage the reserve and issue biannual reports on its performance and associated risks [1].

The public hearing, requested by Deputy Luiz Philippe de Orleans e Bragança, aims to gather insights from monetary authorities, government officials, and industry experts. Confirmed speakers include Diego Kolling, head of Bitcoin strategy at Méliuz, and Julia Rosim, ABcripto policy working group coordinator and Bitso head of public policy [3]. The hearing will focus on technical and regulatory considerations, with the goal of informing subsequent committee reviews and potential amendments to the legislation [2]. Deputy Orleans e Bragança emphasized the importance of collecting Central Bank technical analysis prior to committee markup sessions, noting that this input is essential for refining the proposal [1].

If passed, the legislation would represent a significant step in integrating digital assets into Brazil’s sovereign wealth management. Brazil is already a regional leader in cryptocurrency adoption, ranking first in Latin America and 10th globally according to the Chainalysis 2024 Geography of Crypto report. In 2023, the country recorded nearly $76 billion in digital asset transactions, as reported by the Brazilian tax authority [2]. The RESBit initiative positions Brazil among a growing number of countries exploring the use of Bitcoin as a hedge against traditional currency risks and global financial uncertainties [1].

The bill must pass through a multi-stage approval process. Following the August 20 hearing, it will be reviewed by four committees within the Chamber of Deputies: Economic Development, Science Technology and Innovation, Finance and Taxation, and Constitution Justice and Citizenship [1]. Each committee must approve the proposal before it can proceed to the full Chamber and, subsequently, to the Senate [3]. This rigorous legislative review process ensures that all technical, economic, and legal dimensions of the proposal are thoroughly examined before any decision is made [2].

The initiative reflects Brazil’s broader push to leverage emerging financial technologies and position itself as a key player in the global digital economy. As part of this strategy, the country is exploring the role of blockchain in public and private sectors, with a particular emphasis on financial resilience and innovation. The potential adoption of a Bitcoin strategic reserve could influence the broader Latin American region, reinforcing Brazil’s leadership in digital asset regulation and adoption [3].

Source:

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

[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 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/)