The Brazilian Congress is reviewing a $18 billion Bitcoin strategic reserve proposal, leading the way for cryptocurrency adoption in Latin America towards a national holding era.

The Economic Development Committee of the Brazilian House of Representatives will hold its first hearing on August 20 to review a proposal for a Bitcoin Strategic Reserve (RESBit) worth up to $18.6 billion. The proposal aims to diversify treasury assets, withstand exchange rate fluctuations and geopolitical risks, marking Brazil as potentially the second country in the world to hold Bitcoin on a large scale at the national level, following El Salvador. This article details the contents of the proposal, the legislative process, the scale of Brazil's crypto assets market, and its potential impact on global Bitcoin policy.

The hearing focuses on national Bitcoin reserves and seeks opinions from technical experts

The Brazilian House of Representatives Economic Development Committee will hold its first hearing on August 20 at 3 PM local time to review a Bitcoin Strategic Reserve (RESBit) proposal worth up to $18.6 billion. According to Agência Câmara de Notícias, this meeting will gather technical opinions on Bill No. 4501/24, which aims to modernize the management of the Brazilian Treasury and enhance its competitiveness in the global digital economy. Representative Luiz Philippe de Orleans e Bragança requested this hearing to collect expert analyses on the RESBit proposal from government agencies and financial institutions. The legislation aims to diversify Brazil's treasury assets and protect international reserves from Exchange Rate Fluctuation and geopolitical risks. Confirmed speakers include Méliuz Bitcoin Strategy Director Diego Kolling, and ABcripto Policy Working Group Coordinator, Bitso Public Policy Director Julia Rosim.

Legislative Framework and Market Background: Following Global Trends, Leading Crypto Adoption in Latin America

Legislator Eros Biondini proposed the legislation, citing successful examples of blockchain integration from countries including El Salvador, the United States, China, Dubai, and the European Union. The bill assigns custodial responsibilities to the Brazilian Central Bank and the Ministry of Finance, and requires a report on the performance and risk assessment of RESBit to be submitted every six months. According to Chainalysis's "2024 Crypto Assets Geography Report", Brazil leads Latin America in Crypto Assets adoption, ranking 10th globally. According to data from Brazil's tax authorities, the country's Crypto Assets trading volume reached nearly $76 billion last year. This proposal places Brazil among the countries exploring the use of digital asset reserves as a hedge against traditional currencies.

Committee Review Process and Approval Requirements

After the hearing on August 20, the proposal will enter the conclusive analysis phase conducted by four House committees: the Economic Development Committee, the Science, Technology and Innovation Committee, the Finance and Taxation Committee, and the Constitution, Judiciary and Citizens Committee. Each committee must approve the legislation before it can be submitted for consideration by the plenary session. The bill must be approved by both the House of Representatives and the Senate to become law, establishing a comprehensive legislative review process for the Bitcoin reserve proposal. The technical opinions provided by the hearing will inform the committee's assessment and any possible text modifications during the review stage. Orleans e Bragança seeks the views of monetary authorities, government officials, representatives from the banking system, and subject matter experts to refine the proposal text. The congressman emphasized the importance of collecting the central bank's technical analysis before the committee's markup meeting to improve the legislation.

Conclusion

The Brazilian consideration of a national Bitcoin strategic reserve proposal is an important sign of the maturation of its Crypto Assets regulatory policy, highlighting the trend of sovereign nations viewing Bitcoin as a value storage asset and a financial management tool. As the largest Crypto Assets market in Latin America, if Brazil passes this initiative, it will greatly enhance the legitimacy of Bitcoin and may inspire other emerging market countries to follow suit. Although the legislative process is lengthy and the outcome is uncertain, this hearing itself has already sent a strong signal to the global market: the national level adoption of Bitcoin has gradually moved from the margins into mainstream political discussion, providing new imaginative space for the long-term development of Crypto Assets.