Brazil will take a major legislative step today, August 20, as it begins evaluating a proposal for a Bitcoin reserve. The Chamber of Deputies’ Economic Development Commission will host its first technical hearing on Bill 4501/24. The proposal would authorize a Bitcoin Strategic Reserve (RESBit) worth up to $18.6 billion for Brazil’s Treasury.
- Brazil to Debate Bold Bitcoin Reserve Plan
- Committees to Decide Bill’s Future Path
- Brazil’s Crypto Ecosystem Bolsters Strategic Case
- Summary
- FAQs
- What is the RESBit proposal?
- Who will manage the Bitcoin reserve?
- What is the purpose of the reserve?
- When is the first hearing?
- What are the next legislative steps?
- Glossary of Key Terms
- References:
Brazil to Debate Bold Bitcoin Reserve Plan
The Chamber of Deputies will open the session at 3 P.M. ET to analyze the Bitcoin reserve legislation. Deputy Luiz Philippe de Orleans e Bragança requested the hearing to gather insights from financial experts. The commission seeks to assess how a Bitcoin reserve could support Brazil’s currency and international competitiveness.
The legislation aims to reduce risks tied to foreign exchange volatility and global political disruptions. Bill 4501/24 proposes holding Bitcoin in Brazil’s reserves as a hedge against traditional asset exposure. Lawmaker Eros Biondini introduced the bill, citing success from nations integrating blockchain into public finance.
The hearing will host representatives from both the public and private sectors to offer technical advice. Confirmed speakers include Diego Kolling of Méliuz and Julia Rosim from Bitso and ABcripto. Their input will guide revisions and potential improvements to the Bitcoin reserve proposal.
Committees to Decide Bill’s Future Path
Following the August 20 hearing, the legislation will undergo a structured path through Brazil’s legislative process. Four committees—Economic Development, Finance and Taxation, Science, Technology, and Innovation, and Constitution, Justice, and Citizenship—must approve the proposal. If all panels pass the bill, it will advance to a full Chamber vote.
The central goal is to modernize treasury operations and support Brazil’s expanding role in the global digital economy. Each committee will incorporate technical feedback from today’s session into its evaluation process. Orleans e Bragança emphasized the need for input from monetary authorities and banking leaders.
The proposal assigns reserve custody to Brazil’s Central Bank and Ministry of Finance and requires biannual performance and risk evaluation reports on the Bitcoin reserve. These measures aim to ensure oversight, transparency, and long-term effectiveness of the digital asset plan.
Brazil’s Crypto Ecosystem Bolsters Strategic Case
Brazil leads Latin America in cryptocurrency adoption and ranks 10th globally, according to the 2024 Chainalysis report. The Brazilian tax authority reported nearly $76 billion in crypto transactions during 2023. These statistics highlight a mature market that can support a Bitcoin reserve policy.
Lawmakers view RESBit as a diversification tool to safeguard Brazil’s foreign exchange holdings. The bill also supports blockchain integration and positions Brazil as a regional digital finance leader. The plan echoes efforts by countries such as El Salvador, the United States, and Dubai.
The proposal aligns with growing international interest in Bitcoin reserves as protection against fiat instability. Brazil’s move could set a precedent in Latin America for digital asset inclusion in sovereign finance. The country’s robust crypto activity strengthens the case for legislative adoption.
Summary
The Chamber of Deputies of Brazil will host its first technical hearing on Bill 4501/24 today. The proposal would establish a Bitcoin Strategic Reserve worth 19 billion dormant. The objective would be to diversify the treasury, minimize foreign exchange risks, and increase Brazil’s participation in the global digital economy. The legislation must be approved in committee and then a full Chamber and Senate vote, and experts and other officials provide direction as the bill proceeds through the legislative process.
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FAQs
What is the RESBit proposal?
RESBit is a legislative proposal to establish a Bitcoin reserve within Brazil’s Treasury worth up to $19 billion.
Who will manage the Bitcoin reserve?
The Central Bank and the Ministry of Finance will be responsible for custody and reporting on the reserve.
What is the purpose of the reserve?
It aims to protect Brazil’s international reserves against currency and geopolitical risks and improve treasury diversification.
When is the first hearing?
The Economic Development Commission will hold the first hearing on August 20 at 3 P.M. ET.
What are the next legislative steps?
Four Chamber committees must approve the bill before it goes to a full vote in the Chamber and the Senate.
Glossary of Key Terms
Bitcoin Reserve: A hoard of Bitcoin, maintained by a government to enhance financial stability and provide currency insurance.
RESBit: Bitcoin Strategic Reserve proposed by the Treasury of Brazil in Bill 4501/24.
Chamber of Deputies: This is the lower house of the National Congress of Brazil, which reviews and passes laws.
Central Bank of Brazil: The body that will be responsible for holding the proposed Bitcoin reserve.
Blockchain: It is a computerized registry technology that supports cryptocurrencies such as Bitcoin.
References:
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