Brazil launches a $19 billion Bitcoin strategic reserve hearing! It may rewrite the global encryption landscape.

The Brazilian House of Representatives’ Economic Development Committee will hold its first hearing on August 20 to review a proposal for establishing a Bitcoin Strategic Reserve (RESBit) valued at up to $18.6 billion (approximately $19 billion). The plan aims to diversify the country’s forex reserves, hedge against exchange rate fluctuations and geopolitical risks, and enhance Brazil’s competitiveness in the global digital economy.

RESBit Proposal: Creating a Bitcoin National Reserve for Brazil

Bill No. 4501/24 was introduced by Congressman Eros Biondini and promoted by Congressman Luiz Philippe de Orleans e Bragança during the hearing process.

The core content of the bill includes:

Establishing a Bitcoin strategic reserve: Scale up to 18.6 billion USD

Custodian: Jointly managed by the Central Bank of Brazil and the Ministry of Finance.

Regular review: Submit performance and risk assessment reports every six months.

Legislative goal: Protect international reserves from currency and geopolitical impacts.

Biondini pointed out that countries such as El Salvador, the United States, China, Dubai, and the European Union have integrated blockchain and digital assets to varying degrees, and Brazil should actively follow suit.

Background of the Brazilian Crypto Market: Latin America’s Leader

According to Chainalysis’ “2024 Cryptocurrency Geography Report”, Brazil leads Latin America in cryptocurrency adoption, ranking 10th globally.

2023 Transaction Volume: Nearly 76 billion USD (data from Brazilian tax authorities)

Market Positioning: Regional Cryptocurrency Trading and Innovation Center

Potential advantages: Using Bitcoin reserves as a hedging tool to enhance the confidence of international investors.

This background makes Brazil one of the few countries with the economic scale and market depth capable of promoting a national Bitcoin reserve plan.

Hearing and Review Process

The hearing on August 20 will invite multiple experts to present technical opinions, including:

1. Diego Kolling (Méliuz Bitcoin Strategic Director)

2. Julia Rosim (Coordinator of the ABcripto Policy Working Group, Head of Public Policy at Bitso)

After the meeting, the proposal will enter the review of four House committees:

· Economic Development Committee

· Science and Technology Innovation Committee

· Finance and Taxation Committee

· Constitution, Judiciary and Citizen Committee

Each committee must approve the bill before submitting it for a vote by the full house, and ultimately send it to the Senate for review.

Potential Impacts and International Significance

If the RESBit bill is approved, Brazil will become one of the few major economies in the world to officially include Bitcoin in its national strategic reserves. Potential impacts include:

Currency Diversification: Reducing Dependence on Dollar Reserves

Financial innovation demonstration effect: may lead to imitation by other emerging market countries.

Market Reaction: The demand for Bitcoin is rising, which may have a positive impact on global prices.

However, the plan also faces challenges, including Bitcoin price fluctuations, regulatory uncertainty, and potential pressure from institutions such as the International Monetary Fund (IMF).

Conclusion

Brazil’s $19 billion Bitcoin strategic reserve proposal marks a shift of crypto assets from market speculation to national-level financial instruments. The first hearing on August 20 will lay the groundwork for the plan, and its outcome will not only impact Brazil’s financial strategy but could also change the geopolitical landscape of global cryptocurrencies. For more updates on Bitcoin and national-level crypto policy dynamics, please follow the official Gate platform.