Brazil’s Strategic Bitcoin Reserve Bill (PL 4501/2023) passed its first committee review in the Economic Development Committee of the Chamber of Deputies on June 12, 2025. Introduced by Deputy Eros Biondini, the bill proposes creating a “Sovereign Strategic Bitcoin Reserve” (RESBiT), allowing up to 5% of Brazil’s foreign exchange reserves—approximately $18.5 billion—to be allocated to Bitcoin. The initiative aims to diversify national assets, hedge against inflation and geopolitical risks, and support Brazil’s upcoming digital currency, Drex, using blockchain and AI for transaction integrity.
The bill advocates a cautious, gradual approach, with Bitcoin stored in secure cold wallets and monitored by experts to prevent fraud. It now faces review by the technology, constitution, and finance committees before moving to a full congressional vote and potential approval by President Lula. If passed, Brazil would be the second Latin American country after El Salvador to hold Bitcoin in its national reserves, marking a significant step in institutional cryptocurrency adoption.
Allocating up to 5% of Brazil’s foreign exchange reserves ($18.5 billion) to Bitcoin could hedge against inflation and currency devaluation, given Bitcoin’s fixed supply of 21 million coins. However, Bitcoin’s volatility—price swings of 20-30% in weeks—poses risks to reserve stability. If passed, Brazil would join El Salvador as a pioneer in holding Bitcoin as a national asset, potentially inspiring other emerging economies to follow. This could increase institutional demand, driving Bitcoin’s price higher (current price ~$103,000, up 2.45% in 24 hours as of June 18, 2025).
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
The bill ties Bitcoin to Brazil’s digital currency, Drex, leveraging blockchain for transparency. This could enhance trust in Drex and position Brazil as a leader in digital finance in Latin America. Large-scale Bitcoin purchases by Brazil could trigger short-term price spikes, while any future sales could cause market dips, impacting global crypto investors. Holding Bitcoin could lessen reliance on the U.S. dollar, aligning with BRICS nations’ (Brazil, Russia, India, China, South Africa) push for alternative reserve assets amid geopolitical tensions.
Adopting Bitcoin may signal Brazil’s openness to innovation, attracting crypto-friendly investors and businesses. However, it risks criticism from traditional financial institutions like the IMF, which has warned against crypto reserves due to volatility. Bitcoin’s price appreciation could bolster Brazil’s fiscal position if managed well, but losses could strain public trust and government budgets.
The bill’s emphasis on secure storage (cold wallets) and expert oversight could spur robust crypto regulations, fostering a safer environment for domestic blockchain innovation. With 30% of Brazilians owning crypto (per 2024 surveys), the bill may resonate with younger, tech-savvy voters but alienate others wary of speculative assets.
Brazilian crypto communities on X celebrate the bill as a “game-changer,” arguing it validates Bitcoin’s legitimacy and could drive mass adoption. They highlight its potential to protect against inflation (Brazil’s IPCA inflation was 4.42% in 2024). Figures like Deputy Eros Biondini view Bitcoin as a tool for economic modernization, aligning with Brazil’s tech ambitions (e.g., Drex). They argue it could attract foreign investment and position Brazil as a crypto hub.
Polls show 18-34-year-olds in Brazil are twice as likely to support crypto policies, seeing Bitcoin as a hedge against economic instability (e.g., 2015-2016 recession). Brazil’s central bank and economists like Roberto Campos Neto (former central bank governor) express skepticism, citing Bitcoin’s lack of intrinsic value and risks to monetary policy. They fear losses could destabilize reserves needed for debt servicing ($400 billion external debt in 2024).
Some in President Lula’s coalition worry about political fallout from a volatile asset. Lula’s administration has prioritized fiscal discipline, and Bitcoin’s unpredictability could undermine this. Brazilians over 50, less familiar with crypto (only 10% ownership per 2024 data), view Bitcoin as speculative and risky, preferring traditional assets like gold or dollars.
The debate mirrors global crypto divides, with supporters emphasizing innovation and sovereignty, while critics focus on stability and systemic risks. If the bill passes, Brazil could see increased crypto investment and blockchain development but faces risks of market crashes or international pushback. Failure to pass could slow Brazil’s crypto ambitions, maintaining the status quo but avoiding speculative risks. The bill’s multi-committee review suggests a long road ahead, with amendments likely.