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- Legislators in Brazil have reintroduced a bill for a national strategic Bitcoin receive that would allow the country to accumulate nearly $20 billion of BTC in five years.
- The bill was first introduced in November 2024 and has now passed five committees to be tabled before the lower house.
A new bill on the floor of Brazil’s legislature could pave the way for the Latin American nation to create a strategic Bitcoin reserve and accumulate up to 1 million BTC.
Bill PL 4501/2024 was first introduced to the lower house of the National Congress, known as the Câmara dos Deputados, in November 2024. It has since then gone through a series of committees for debate and amendments, and on February 9, it was deemed ready to go to the floor of the house starting this week for debate and amendment proposals.
The bill says that turning to Bitcoin would diversify the financial assets of the Brazilian National Treasury. It would also protect the reserves from currency fluctuations and geopolitical risks, including from any potential tariffs that the country could be slapped with as a result of being a founding member of BRICS. As we have reported, Brazil has been one of the most outspoken critics of the Donald Trump government in the BRICS alliance.
A BTC reserve would also boost the adoption of Drex, the country’s CBDC, legislators say.
Under the new law, Brazil would acquire the BTC gradually over the years, but it would limit its holdings to 5% of its international reserves. As of last month, these reserves stood at $364.4 billion, and 5% of these would be $18.22 billion, which at the current Bitcoin prices, would equate to 264,400 BTC.
Some market commentators have likened the bill to a similar move by some US lawmakers to push the government to establish a BTC reserve. Pro-crypto Senator Cynthia Llumis proposed that the US government purchase 1 million BTC and holds it for the next 20 years with laws prohibiting sale. However, in Brazil, the proposed law hasn’t mentioned the specific number of BTC the Nattional Treasury would target to acquire.
As CNF reported, there have been rumors that Venezuela may hold up to 600,000 BTC in reserves, controlled by a close ally of deposed president Nicolas Maduro who is now at large.
Brazil’s Rising Bitcoin Adoption
Bill PL 4501/2024 stipulates that the management of the BTC reserve shall be transparent, with semi-annual reports to Congress on the progress. The tokens must be held in cold wallets for enhanced security.
The Ministry of Finance and the central bank will manage the reserve, and must jointly develop advanced monitoring and control systems. They shall be overseen by Congress, the Comptroller General of the Union and the Federal Court of Accounts.
Beyond the stash, the government must embark on blockchain education, starting with crypto courses in universities. It must also train civil servants on crypto and offer incentives for local crypto startups.
Brazil is one of the leading global players in crypto. Chainalysis ranked it fifth globally for adoption, only behind the US, India, Pakistan and Vietnam in its Global Crypto Adoption Index last year.
Meanwhile, Bitcoin trades at $68,840, gaining 2% in the past day.
