Brazil Sets Historic Bitcoin Reserve Hearing as South America Leads Crypto Revolution — MercoPress

Brazil Sets Historic Bitcoin Reserve Hearing as South America Leads Crypto Revolution

Tuesday, August 19th 2025 – 00:19 UTC

The timing appears strategic as global sovereign Bitcoin adoption gains momentum

Brazil’s Chamber of Deputies will hold its first public hearing on creating a national Bitcoin reserve on August 20, 2025. The country appears ready to join a small group of nations exploring cryptocurrency as part of their financial strategy. Bill 4501/2024 would let Brazil spend up to 5% of treasury funds on Bitcoin, which equals about $15 billion given the central bank’s $300 billion in reserves.

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The Economic Development Commission will host the session in Plenary 5 of Annex II at the Chamber of Deputies in Brasília, beginning at 4:00 p.m. local time. Key participants include Diego Kolling, Head of Bitcoin Strategy at Méliuz, and Rubens Sardenberg from FEBRABAN, with officials from the Ministry of Finance, Central Bank, and Ministry of Development also invited.

Deputy Eros Biondini put forward the bill last November. Deputy Luiz Philippe de Orleans e Bragança then asked for this public hearing through the Economic Development Commission. The bill says Bitcoin could shield Brazil’s reserves from currency swings and political turmoil while boosting blockchain use in both government and business.

The debate has generated mixed reactions within Brazil’s financial establishment. Pedro Giocondo Guerra, Vice President Geraldo Alckmin’s chief of staff, has championed the initiative, calling Bitcoin “digital gold.” On the other side, Nilton David from Brazil’s central bank thinks adding cryptocurrency to the nation’s financial reserves would be a mistake.

The legislation includes robust security measures, requiring Bitcoin holdings are held in cold wallets and establishing criminal and administrative penalties for officials who do not manage the reserve appropriately. If approved, the executive branch would have 180 days to regulate the program.

Brazil’s crypto infrastructure has already shown significant maturity. The Brazilian Securities and Exchange Commission has approved cryptocurrency ETFs, including HASH11 from Hashdex and QBTC11 from QR Asset Management. Additionally, Brazil recently approved the first spot XRP ETF, demonstrating the country’s progressive approach to digital asset integration.

Brazil leads South America’s crypto revolution, with the region posting 42.5% growth in cryptocurrency activity over the past year, which makes it the world’s second-fastest region for crypto growth. The country received an estimated $90.3 billion in cryptocurrency value, just behind Argentina’s $91.1 billion, while ranking ninth globally in Chainalysis’s Global Crypto Adoption Index.

The timing appears strategic as global sovereign Bitcoin adoption gains momentum. The United States has signaled interest in national Bitcoin reserves through executive orders, while countries like Kazakhstan, India, and Sweden have also been linked to similar plans. South America has emerged as a major crypto growth hub, driven by inflation and unstable currencies.

Following Chamber approval, the bill moves to Senate review before President Lula decides whether to sign or reject it. This August 20 session could spark similar moves across Latin America.

Brazil controls roughly 40% of South America’s economic output, making its Bitcoin decision influential for neighboring countries considering their own digital asset policies.

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