Brazil’s proposed Bitcoin Strategic Reserve would convert 5% of foreign reserves—approximately $18.6–19 billion—into Bitcoin as a national hedge, debated at a parliamentary hearing on August 20, 2025. Lawmakers, central bank officials, and industry experts assessed governance, volatility mitigation, and geopolitical ramifications.
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Brazil debates a $19B Bitcoin reserve—5% of foreign reserves proposed.
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Hearing included lawmakers, Central Bank representatives, and crypto industry experts.
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Proposal may reshape regional crypto adoption and treasury risk management.
Brazil Bitcoin Strategic Reserve proposal: 5% of foreign reserves (~$19B) debated in Brasília on Aug 20, 2025 — read implications, expert quotes, and next steps.
Published: 2025-08-20 — Updated: 2025-08-20 | Author: COINOTAG
What is Brazil’s Bitcoin Strategic Reserve proposal?
Brazil’s Bitcoin Strategic Reserve proposal would allocate 5% of national foreign-exchange reserves into Bitcoin, equating to roughly $18.6–19 billion. The plan, introduced by Federal Deputy Eros Biondini, was the subject of a parliamentary hearing on August 20, 2025, where officials assessed financial stability, governance, and operational safeguards.
How would a 5% Bitcoin allocation affect Brazil’s foreign reserves?
A 5% allocation increases reserve diversification but raises volatility and valuation risk. Brazil’s foreign reserves total approximately $370–380 billion, so a $19 billion Bitcoin allocation is sizable yet not dominant. Officials discussed hedging strategies, custody models, and stress-testing scenarios to limit fiscal exposure.
Why did lawmakers and experts hold a parliamentary hearing?
Lawmakers convened to evaluate legal, fiscal, and technical implications of holding Bitcoin as a national reserve asset. Participants included Central Bank officials, the Ministry of Finance, and industry voices such as Diego Kolling (Méliuz). The hearing focused on custody solutions, accounting treatment, and international precedent.
What governance and custody options were discussed?
Speakers reviewed multi-party custody, institutional-grade custody providers, and on-chain custody safeguards. Short-term proposals emphasized cold-storage splits, independent audit triggers, and legal frameworks to separate monetary policy from crypto asset management.
Frequently Asked Questions
Will Brazil immediately buy $19 billion in Bitcoin?
No. The proposal is under legislative and technical review. The hearing on August 20, 2025, evaluated mechanisms and risks; no purchase has been confirmed or executed.
How would Bitcoin be integrated into official reserves?
Integration would require legal authorization, treasury and central bank coordination, defined custody, accounting rules, and stress-testing to manage volatility and liquidity needs.
Could this move influence other Latin American countries?
Yes. A major economy adopting Bitcoin as a reserve asset could accelerate regional policy discussions and private-sector adoption, but outcomes depend on implementation and market response.
How would implementation work step-by-step?
Officials outlined a multi-phase implementation roadmap focusing on legal clearance and operational safeguards.
Key Takeaways
- Allocation size: Proposal targets 5% of foreign reserves (~$18.6–19B).
- Stakeholders: Lawmakers, Central Bank, Ministry of Finance, and crypto experts took part in the Aug 20, 2025 hearing.
- Next steps: Legal clearance, custody selection, phased acquisition, and audit frameworks are required before any purchases.
Conclusion
The Brazil Bitcoin Strategic Reserve proposal marks a notable policy discussion about incorporating Bitcoin into national reserves. The Aug 20, 2025 hearing highlighted governance, custody, and macroprudential considerations. COINOTAG will monitor legislative progress and technical assessments as Brazil evaluates this potential shift in reserve management.