Brazil: historic hearing on the national Bitcoin reserve

On August 20, 2025, the Chamber of Deputies of Brazil will hold a public hearing to discuss the creation of a national Bitcoin reserve, a legislative initiative that could convert up to 5% of the enormous state reserves (equal to 300 billion dollars) into the most discussed digital asset on the planet. 

This is a possible investment of 15 billion dollars: an absolute record for a sovereign state, a scenario that turns the spotlight on the entire crypto and financial world.

What is the Brazilian proposal on the national Bitcoin reserve?

The bill, presented in November 2024, aims to authorize Brazil to allocate a significant portion of its international reserves specifically to Bitcoin. More precisely, up to 5% of the Treasury’s resources (a figure that, based on data, potentially equates to investing 15 billion dollars in the digital asset). The intention expressed in the bill? To use Bitcoin not only as a tool for enhancing state reserves but also to protect them from currency fluctuations and geopolitical risks – concepts that are increasingly sensitive on the global chessboard.

Which institutions are participating in the hearing on August 20?

According to the official website of the Chamber of Deputies, at least six important institutions will participate in the debate: the Central Bank of Brazil, the Ministry of the Treasury, one of the leading associations in the crypto world, representatives of fintech and the traditional banking sector. This mix of actors highlights the historical significance of the discussion, which involves both policymaking and the tangible aspects of financial markets and digital innovation.

Why does Brazil want to bet on Bitcoin in reserves?

The strategic intents are twofold. First: protect state reserves against potential risks arising from exchange rate fluctuations (for example, shocks on the dollar) and geopolitical tensions that could impact traditional assets. 

Second: take advantage of the opportunity to “promote the spread of blockchain technologies both in the public and private sectors,” encouraging the local development of DeFi projects and digital economy. A choice that reflects the growing global attention towards Bitcoin as “digital gold,” a status already publicly recognized by Brazilian government figures.

What do the proponents of the bill say?

There is no shortage of authoritative endorsements: Pedro Giocondo Guerra, chief of staff for Vice President Alckmin, already stated in March that “debating the creation of a sovereign reserve in Bitcoin is in the public interest and vital for the prosperity of Brazil. After all, Bitcoin is digital gold, the gold of the internet.” A strong argument that resonates perfectly with the new narratives on national economic independence.

Are there resistances from financial institutions?

Yes, the proposal divides. Among the most significant skeptics is Nilton David, director of monetary policy at the Central Bank of Brazil. According to David, “it would be inappropriate to include crypto assets as part of the country’s currency reserves.” The concern is about the volatility of Bitcoin and the risks to state financial stability. This position, however, does not block the political dialogue; on the contrary, the friction between innovation and institutional prudence fuels interest around the hearing on August 20.

What happens now: next legislative steps and scenarios

If the Chamber of Deputies should approve the law, the proposal will have to be reviewed by the Senato brasiliano. From there, the text will be sent to President Lula for the final signature or veto. 

The timeline, therefore, could see the first developments already by the end of 2025. At stake is not just a national reform: Brazil could become the largest economy in the world to officially hold Bitcoin among its financial reserves. An example that could inspire other emerging countries or, on the contrary, provoke new regulatory barriers on a global scale.

What could be the consequences for Bitcoin and the crypto sector?

The large-scale adoption by Brazil would represent an unprecedented case, both in terms of volumes and symbolic effects. The potential conversion of state reserves into Bitcoin could influence the volatility of the global market, attract new investments, and strengthen the status of Bitcoin as a financial asset recognized by sovereign states. Furthermore, the push on blockchain promoted in the bill promises significant impacts on the local fintech ecosystem and on startups in the DeFi sector.

Bulletin: risk, opportunity, and warning for investors and citizens

However, significant risks remain: the volatility of Bitcoin, the need for secure custody systems, the impact on international exchange relations. For crypto operators, the “Trump Effect” that is raging in digital markets could now have its corresponding “Brazil Effect,” driving a new cycle of attention, whether speculative or systemic.

The future depends on the vote: how to stay updated and what to expect

The debate on August 20, 2025 is the gateway to a new era for Brazil and, perhaps, for the role of Bitcoin in global markets. The prospects remain open: historical legitimization of the digital asset or strengthening of the central banks’ cautious positions? Everything can change in the coming weeks. For real-time developments, follow the official website of the Chamber of Deputies and the main Brazilian crypto community channels.