Brazil’s House of Representatives has proposed legislation to establish a national Bitcoin reserve in the country.
A public hearing will take place on August 20, 2025, to deliberate on this landmark bill.
The Central Bank of Brazil, the Ministry of Finance, a national crypto advocacy group, representatives from the banking sector, and fintech companies are expected to participate in the hearing.
If the bill gains approval in the lower chamber, it will proceed to the Federal Senate.
The final enactment would depend on President Luiz Inácio Lula da Silva, who holds the authority to sign the bill into law or issue a veto.
If enacted, the legislation would authorize the allocation of up to 5% of Brazil’s treasury funds, (approximately $15 billion) to buy Bitcoin.
The proposed legislation, introduced in November 2024, argues that a Bitcoin reserve would help safeguard the country’s international reserves against exchange rate volatility and geopolitical instability.
Reactions to Brazil Setting-up a National Bitcoin Reserve
The proposal has sparked a range of reactions across Brazil’s political and financial landscape.
Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, expressed support earlier this year.
He said Bitcoin is “the gold of the internet” and framed the debate as crucial to Brazil’s economic future.
“Debating the creation of a sovereign Bitcoin reserve is in the public interest and vital to Brazil’s prosperity,” Guerra said.
However, the Central Bank of Brazil has raised concerns.
Nilton David, the institution’s director of monetary policy, cautioned against including cryptocurrencies in the country’s official foreign reserves, citing financial and regulatory risks.
Global Momentum Toward National Bitcoin Reserves
The Brazilian initiative follows a broader international trend of governments exploring or implementing state-backed cryptocurrency holdings.
In March, U.S. President Donald Trump signed an executive order establishing a strategic Bitcoin reserve.
Kazakhstan, India, and Sweden have been rumored or confirmed to be considering similar moves.
Kazakhstan, for instance, plans to form its Bitcoin reserve using assets seized from illicit mining and trading activities.
This week Indonesia discussed setting up a National Bitcoin Reserve.
As of mid-2025, the countries holding the most Bitcoin are, in descending order: the United States, China, the United Kingdom, Ukraine, Bhutan, and El Salvador.
Many of these countries view digital assets as a hedge against inflation and a diversification of national reserves.
The upcoming hearing in Brazil will be a key moment in shaping the country’s future role in the global digital economy.
Stakeholders from across the financial and political spectrum will weigh in on what could become a transformative policy decision.
