Brazil’s Parliament to Debate National Bitcoin Reserve as South America Leads Crypto Revolution

The proposal could make Brazil one of the first major economies to add Bitcoin to its official treasury reserves.

Brazil’s lower house will hold its first public hearing on creating a national Bitcoin reserve on August 20, 2025.

The hearing will examine Bill 4501/2024, which suggests putting up to 5% of Brazil’s international reserves into Bitcoin. With Brazil holding about $300 billion in reserves, this could mean a $15 billion Bitcoin investment – one of the largest government crypto purchases in history.

Federal Deputy Eros Biondini introduced the bill in November 2024. The proposal aims to protect Brazil’s money against currency problems and global risks while pushing the country ahead in digital finance.

The Numbers Behind Brazil’s Bold Move

The plan calls for creating the Sovereign Strategic Bitcoin Reserve, known as RESBit. Brazil’s Central Bank and Finance Ministry would manage these Bitcoin holdings together. The government would buy Bitcoin slowly over time, not all at once.

Source: www.camara.leg.br

The proposal includes strict security rules. Bitcoin would be stored in cold wallets – offline storage that hackers cannot reach. Officials who mismanage the reserve would face criminal charges. If lawmakers approve the bill, the government gets 180 days to set up the program.

Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, supports the idea. He called Bitcoin “the digital gold” and said debating a Bitcoin reserve helps Brazil’s future wealth.

Not everyone agrees. Brazil’s central bank monetary policy director Nilton David thinks adding crypto to the country’s reserves would be wrong. The August 20 hearing will let both sides present their arguments.

South America’s Crypto Boom

Brazil’s Bitcoin reserve proposal comes as South America becomes a global crypto powerhouse. The region saw 42.5% growth in crypto activity over the past year, making it the world’s second-fastest growing crypto region.

The numbers show why people turn to crypto in South America. High inflation, limited bank access, and unstable currencies push citizens toward digital money. In Argentina, many people convert their paychecks to stable digital dollars immediately to avoid losing value.

Brazil already shows strong crypto adoption. The country ranks 9th globally in crypto use and launched the world’s first XRP exchange-traded fund. Major companies like Circle and Ripple have expanded operations in Brazil, seeing huge potential in the market.

Argentina’s Crypto-Friendly President

Argentina elected Javier Milei as president in late 2023. Milei, who calls himself an anarcho-capitalist, supports Bitcoin and wants to modernize Argentina’s economy. He plans to let Argentines use any currency they want, including Bitcoin, for daily transactions.

Monthly inflation in Argentina dropped from 25.5% in December 2023 to 2.7% by October 2024 under Milei’s policies. However, poverty rates jumped to 53% as the government cut spending programs.

Many Argentines already use crypto to protect their savings. With inflation historically high and government limits on buying US dollars, Bitcoin and stablecoins offer an escape route. Argentina has 18.2% crypto ownership – the highest rate in Latin America.

Milei hasn’t proposed a Bitcoin reserve like Brazil’s bill. Instead, he focuses on letting the free market decide which money people prefer. His approach differs from El Salvador’s previous Bitcoin experiment.

El Salvador’s Bitcoin Lesson

El Salvador made Bitcoin legal money in 2021, requiring all businesses to accept it. This made global headlines and inspired other countries to consider similar moves. However, the experiment faced serious problems.

Most Salvadorans never used Bitcoin for daily purchases. By 2024, 92% of citizens avoided Bitcoin transactions. The government’s Chivo wallet had security issues and technical problems that hurt public trust.

In January 2025, El Salvador ended Bitcoin’s legal status under pressure from the International Monetary Fund. The country needed a $1.4 billion loan, and the IMF demanded Bitcoin policy changes.

El Salvador still allows voluntary Bitcoin use and continues buying Bitcoin for government reserves. The country owns over 6,000 Bitcoin worth about $569 million. The experiment taught important lessons about forcing crypto adoption versus letting it grow naturally.

What’s Next for Regional Crypto Policy

The August 20 hearing could influence crypto policy across South America. If Brazil approves a Bitcoin reserve, other countries might follow. Argentina, Colombia, and Paraguay already explore crypto-friendly rules.

Industry experts believe government Bitcoin reserves could trigger global adoption waves. Several US politicians also propose American Bitcoin reserves, creating international competition for crypto leadership.

Brazil’s approach seems more careful than El Salvador’s. Instead of making Bitcoin required money, Brazil wants Bitcoin as a backup reserve asset. This strategy might avoid the problems El Salvador faced while still gaining Bitcoin’s benefits.

The hearing will include crypto industry leaders, banking representatives, and government officials. Their discussions could shape Brazil’s digital finance future and influence the entire region’s crypto direction.

Road Ahead

Brazil’s Bitcoin reserve hearing represents a major moment for cryptocurrency adoption worldwide. Unlike El Salvador’s requirement that everyone use Bitcoin, Brazil proposes using Bitcoin to strengthen its financial reserves while keeping traditional money for daily use.

South America leads global crypto growth because economic necessity drives adoption. High inflation, weak currencies, and limited banking access make digital money attractive to millions of people. Brazil’s careful approach might provide a model for other major economies considering similar moves.

The August 20 hearing will determine whether Brazil joins the small group of countries with government Bitcoin holdings. Success could encourage more nations to explore crypto reserves, while failure might slow government adoption globally.