Brazil’s Economic Development Committee of the Chamber of Deputies held a landmark public hearing on Wednesday to discuss the creation of a “Sovereign Strategic Reserve of Bitcoins” by the federal government, marking the first official legislative debate on the proposal.
The hearing, requested by Federal Deputy Luiz Philippe de Orleans e Braganca under Requirement 39/2025, focused on Bill 4501/2024, which would direct Brazil’s Treasury to begin diversifying its foreign exchange reserves by purchasing Bitcoin and other digital assets considered secure. The bill was originally introduced in November 2024 by Representative Eros Biondini.
A $17 Billion Bet?
Under the proposed legislation, up to 5% of Brazil’s approximately $341 billion in foreign exchange reserves could be allocated to Bitcoin. That would amount to roughly $17 billion, potentially making Brazil the world’s largest holder of sovereign Bitcoin reserves, surpassing El Salvador, the United Kingdom, and Bhutan.
The bill envisions that Bitcoin assets would be stored in cold wallet infrastructure under state jurisdiction, with strict custody and security protocols. The proposal also calls for the Treasury to periodically review and rebalance its digital asset holdings based on market conditions.
Institutions Weigh In
The hearing drew participation from multiple institutions. Confirmed attendees included Diego Kolling of Brazilian fintech company Meliuz and Rubens Sardenberg from FEBRABAN, the Brazilian Federation of Banks. The committee also invited representatives from the Central Bank of Brazil, the Ministry of Finance, and the Ministry of Development, Industry, Commerce and Services.
The Central Bank of Brazil has been increasingly active in the digital asset space. It is planning to send officials to the Central Banking’s Autumn Meetings in Rio de Janeiro to discuss the use of Bitcoin and other cryptocurrencies by national reserve managers, alongside topics such as stablecoins and central bank digital currencies.
The proposal comes as part of a growing global trend of nations exploring sovereign digital asset strategies. El Salvador began accumulating Bitcoin in 2021, while the United Kingdom and Bhutan have also disclosed positions in recent years.
Uncertain Road Ahead
Despite the historic nature of the hearing, significant hurdles remain. The bill’s language has been criticized for inconsistently mixing Bitcoin-specific terminology with general cryptocurrency references throughout its official documentation, raising questions about legislative precision. The final shape of Brazil’s crypto reserve strategy will depend heavily on the conclusions drawn from Wednesday’s session and subsequent legislative action.
Sources: Coinspeaker; Cryptopolitan; Crypto News Land; Brazilian Chamber of Deputies
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