Key Takeaways
- Brazil's Congress is considering a bill to allocate up to 5% of its $370 billion reserves to bitcoin.
- The proposed Strategic Sovereign Bitcoin Reserve would make Brazil the first G20 nation to codify bitcoin as a sovereign reserve asset.
- The legislative approach distinguishes Brazil's move from previous executive-led efforts in other countries, setting a global precedent.
Brazil is set to make history as the first G20 nation to allocate up to 5% of its $370 billion international reserves into bitcoin, pending the passage of Bill PL 4501/2024.
The legislation, currently moving through the Chamber of Deputies, proposes the creation of a Strategic Sovereign Bitcoin Reserve (RESBit), giving the Central Bank and Ministry of Finance authority to treat bitcoin as a strategic hedge.
Historic legislation: Brazil’s strategic bitcoin reserve
The bill aims to diversify Brazil’s reserve holdings, reduce macroeconomic risks, and formally integrate bitcoin into national policy. Unlike El Salvador’s executive-led adoption, Brazil’s approach is legislative, providing a more stable and institutionalized framework.
The bill has already cleared its first committee, drawing significant attention from financial policymakers and the global bitcoin community. If passed, it would represent the first time a major economy codifies bitcoin as a sovereign reserve asset into law.
Bitcoin Analyst pete_rizzo_ posted on X:
“Latin America’s largest economy wants BTC. This is huge”
Observers note that this move sets a precedent for other G20 nations, potentially influencing how sovereign wealth is managed internationally:
“Brazil turning Bitcoin into a strategic reserve asset could trigger serious global copycat behavior. This is not El Salvador 2.0. This is Sovereign Bitcoin Phase 2 reserve-grade codification”
Next step
The bill now awaits further debate in the Chamber of Deputies.
Should it pass, Brazil could soon hold bitcoin alongside traditional reserves, signaling a significant shift in global asset management.
