Brazil to hold first hearing on proposed $19 billion Bitcoin Strategic Reserve

Brazil’s Chamber of Deputies Economic Development Commission will hold its first hearing on Aug. 20 to examine a proposal to establish a Bitcoin Strategic Reserve (RESBit) worth up to $18.6 billion.

As Agência Câmara de Notícias reported, the 3 P.M. ET session will gather technical perspectives on Bill 4501/24, which seeks to modernize Brazil’s treasury management and enhance competitiveness in the global digital economy.

Deputy Luiz Philippe de Orleans e Bragança requested the hearing to collect expert analysis from government agencies and financial institutions regarding the RESBit proposal.

The legislation aims to diversify Brazil’s Treasury assets and protect international reserves against exchange rate fluctuations and geopolitical risks.

Confirmed speakers include Diego Kolling, head of Bitcoin strategy at Méliuz, and Julia Rosim, ABcripto policy working group coordinator and Bitso head of public policy.

Legislative framework and market context

Lawmaker Eros Biondini introduced the legislation, citing successful blockchain integration by countries including El Salvador, the United States, China, Dubai, and the European Union.

The bill assigns custody responsibilities to Brazil’s Central Bank and Finance Ministry and requires biannual reports on RESBit performance and risk assessments.

Brazil leads Latin America in crypto adoption and ranks 10th globally according to Chainalysis’ Geography of Crypto report 2024.

According to Brazilian tax authority data, the country traded nearly $76 billion in crypto last year.

The proposal positions Brazil among nations exploring digital asset reserves as hedges against traditional currency.

Committee review process and approval requirements

Following the hearing on Aug. 20, the proposal enters conclusive analysis by four Chamber committees: Economic Development, Science Technology and Innovation, Finance and Taxation, and Constitution Justice and Citizenship.

Each committee must approve the legislation before advancing to full Chamber consideration.

The bill requires approval from both the Chamber of Deputies and the Senate to become law, establishing a comprehensive legislative review process for the Bitcoin reserve proposal.

Technical input from the hearing will inform committee evaluations and potential text modifications during the review phases.

Orleans e Bragança seeks perspectives from monetary authorities, government officials, banking system representatives, and subject matter experts to refine the proposal text.

The deputy noted the importance of collecting Central Bank technical analysis before committee markup sessions begin to perfect the legislation.

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