- Brazil’s Chamber of Deputies will hold a hearing on 20 August to deliberate on creating a national Bitcoin reserve through bill 4501/2024.
- A 2024 proposal suggested allocating 5% of Brazil’s US$330 billion reserves to Bitcoin, which would equate to approximately US$16.5 billion in BTC.
- Brazil leads South American crypto adoption with millions of users and has attracted major players like BlackRock’s Bitcoin ETF and Ripple partnerships.
- The Economic Development Committee awaits confirmation from key government ministries and the Central Bank before proceeding with deliberations.
The largest economy in South America will soon hold a hearing on whether to establish a Bitcoin reserve. According to official documents, Brazil’s Chamber of Deputies, which is the country’s lower house of the National Congress, will hold a meeting on 20 August.
The Comissão De Desenvolvimento Econômico, the Brazilian Economic Development Committee (CDE), is set to deliberate on creating a Bitcoin stockpile through bill 4501/2024.
It is unclear what the potential scale of such a reserve would be or what timeline it would follow for implementation. The CDE is still awaiting confirmation from other potential attendees, such as the Ministry of Finance, the Ministry of Development, Industry, Commerce and Services, as well as Brazil’s Central Bank.
Calls for a Bitcoin reserve back in 2024 by Brazilian congressman Eros Biondini proposed a 5% allocation of Brazil’s reserves to BTC.
According to data from the World Bank, Brazil held US$330 billion (AU$509 billion) in reserves – including US dollars and gold – in 2024, which would translate to around US$16.5 billion (AU$25.4 billion) allocated to Bitcoin under that proposal.
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Brazil’s Role in Global Crypto Adoption
Brazil has long been a leader in cryptocurrency adoption in South America. Millions of people use digital assets in the country, which boasts some of the highest adoption rates in the region.
In February 2024, BlackRock launched its Spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT39), on Brazil’s B3 stock exchange, marking a timely entry into the country’s growing crypto market.
The ETF introduced Bitcoin-backed Brazilian Depositary Receipts (BDRs), offering local investors easier access to digital assets through traditional financial channels.
Earlier this year, crypto heavyweight Ripple and Portuguese financial services company Unicâmbio joined forces to use Ripple Payments for transfers between Brazil and Portugal.
In July, Ripple doubled down on Brazil, partnering with the National Federation of Associations of the Central Bank (Fenasbac) to boost local blockchain adoption.
The partnership aims to promote the blockchain industry in Latin America by sponsoring two fintech startups.
These companies will develop solutions for treasury management, asset tokenisation, payments and lending using the XRP Ledger – Ripple’s decentralised layer 1 blockchain. Ripple’s LATAM Managing Director, Silvio Pegado, emphasised the goal of addressing real-world financial challenges through blockchain innovation.
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