Brazil’s $19B Bitcoin Reserve Proposal Enters Historic First Hearing

Brazil just kicked off its first-ever congressional hearing on a landmark $19 billion Bitcoin strategic reserve plan—a move that could reshape the nation's treasury and send shockwaves through global markets.

Why This Matters

Lawmakers are debating whether to convert a chunk of the country's foreign reserves into Bitcoin, positioning Brazil at the forefront of national crypto adoption. The proposal argues that Bitcoin's scarcity and decentralization offer a hedge against inflation and geopolitical risk—something the U.S. dollar can't always promise.

The Big Questions

How would Brazil custody $19 billion in Bitcoin? Who manages the keys? And what happens when volatility strikes? Critics call it a reckless gamble; supporters say it’s a necessary evolution of state reserves. Either way, traditional finance won’t be thrilled—after all, nothing undermines a central bank like a decentralized alternative.

Bottom Line

If approved, Brazil wouldn’t just be buying Bitcoin—it’d be buying into a new financial paradigm. And for the finance bros still obsessed with gold? Let’s just say digital gold doesn’t need a vault.

TLDR

• Brazil will hold its first hearing on Bill 4501/24 to examine a $19 billion Bitcoin Strategic Reserve.
• The Chamber of Deputies Economic Development Commission will lead the session with participation from experts and financial institutions.
• Deputy Luiz Philippe de Orleans e Bragança requested the hearing to gather technical input from monetary authorities and specialists.
• The proposal assigns custody of the Bitcoin reserve to the Central Bank and Finance Ministry with mandatory biannual reports.
• Lawmaker Eros Biondini introduced the bill to modernize treasury management and reduce exposure to currency risks.

Brazil will open its first hearing on Bill 4501/24 today to examine creating a Bitcoin Strategic Reserve worth $19 billion. The Chamber of Deputies Economic Development Commission will host the 3 P.M. ET session in Brasília. Lawmakers will hear technical opinions from government agencies, financial institutions, and digital asset specialists.

Hearing on Bitcoin Reserve

Deputy Luiz Philippe de Orleans e Bragança requested the hearing to strengthen the legislative debate with technical perspectives. He emphasized the need for monetary authority analysis before the committees advance the bill. “The Central Bank’s technical contribution is essential for text improvements,” Orleans e Bragança stated.

The hearing will include experts such as Diego Kolling, head of bitcoin strategy at Méliuz, and Julia Rosim, policy coordinator at ABcripto. Both will share industry views on reserve diversification, digital competitiveness, and risk mitigation strategies. Their input will guide lawmakers in adjusting the proposal for committee evaluations.

Lawmaker Eros Biondini authored the bill, citing international blockchain adoption examples. He pointed to initiatives in El Salvador, China, Dubai, the United States, and the European Union. He argued that Brazil should act strategically to modernize treasury management and safeguard its reserves.

Legislative Review Process

After the Economic Development Commission hearing, four committees will analyze the proposal: Science Technology and Innovation, Finance and Taxation, Constitution Justice and Citizenship, and Economic Development. Each committee must approve the bill before the full Chamber considers it.

The legislation assigns custody of Bitcoin reserves to the Central Bank and Finance Ministry. It also requires biannual reports covering performance, risks, and strategic relevance of the holdings. The framework intends to strengthen Brazil’s treasury management and minimize exposure to exchange rate fluctuations.

Following approval in the Chamber, the bill must pass the Senate for final adoption. This step will complete the legislative review process. Only then can Brazil establish its Bitcoin Strategic Reserve officially.

Brazil’s Role in Global Crypto Adoption

According to Chainalysis, Brazil currently ranks tenth worldwide in cryptocurrency adoption. The nation leads Latin America in trading volumes. Tax authority data recorded nearly $76 billion in crypto transactions last year.

The proposal seeks to position Brazil among countries using digital reserves as financial hedges. Lawmakers argue that Bitcoin can help protect national reserves from global market instability and highlight its role in improving economic competitiveness.

Experts believe the initiative could accelerate Brazil’s leadership in the digital economy. However, committee evaluations and technical reports will define its final scope. The decision will determine whether Brazil creates one of the largest sovereign Bitcoin reserves.