Brazil Strategic Reserve Bill (PL 4501/2023) Economic Development Committee of the Chamber of Deputies On June 12, 2025. Presented by deputy Eros Biondini, the bill proposes to create a “reserve of sovereign strategic bitcoin” (rebbit), allowing up to 5% of Brazil’s exchange reserves – about 18.5 billion dollars – to be allocated to Bitcoin. The initiative aims to diversify national assets, to hide against inflation and geopolitical risks and to support the next digital currency of Brazil, DrexUsing blockchain and AI for the integrity of transactions.
The bill recommends a prudent and progressive approach, with bitcoin stored in safe and monitored cold wallets to prevent fraud. He now faces the examination by technology, constitution and financing committees before moving on to a full vote of the congress and for the potential approval of President Lula. If it has passed, Brazil would be the second country in Latin America after El Salvador to hold Bitcoin in its national reserves, marking an important step in the institutional adoption of the cryptocurrency.
The allowance up to 5% of Brazil exchange reserves ($ 18.5 billion) in Bitcoin could hide against inflation and the devaluation of currencies, given the fixed bitcoin offer of 21 million pieces. However, the volatility of Bitcoin – swings at a price of 20 to 30% in weeks – presents risks to reserve stability. If it passed, Brazil would join El Salvador as a pioneer in Bitcoin outfit as a national asset, potentially inspiring other emerging savings to follow. This could increase institutional demand, which increased the price of Bitcoin (current price ~ $ 103,000, up 2.45% in 24 hours to 18 June 2025).
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The bill binds Bitcoin to Brazil digital currency, DrexTaking away from the blockchain for transparency. This could improve confidence in Drex and position Brazil as a leader in digital finance in Latin America. Bitcoin purchases on a large scale by Brazil could trigger short -term price peaks, while future sales could cause market cuts, which has an impact on global cryptography investors. Holding Bitcoin could reduce dependence on the US dollar, aligning with The catches Nations (Brazil, Russia, India, China, South Africa) put pressure on alternative reserve assets in the midst of geopolitical tensions.
The adoption of Bitcoin can point out the opening of Brazil to innovation, attracting investors and cryptographic friendly companies. However, this risks criticism of traditional financial institutions such as the IMF, which warned against crypto reserves due to volatility. The assessment of Bitcoin prices could strengthen Brazil’s budgetary position if it was well managed, but losses could reduce public confidence and government’s budgets.
The emphasis on the bill on secure storage (cold portfolios) and the surveillance of experts could stimulate robust cryptography regulations, promoting a safer environment for the innovation of the domestic blockchain. With 30% of Brazilians with a crypto (by 2024 surveys), the bill can resonate with younger and warned voters, but alienate others suspicious of speculative assets.
Brazilian cryptographic communities on X celebrate the bill as a “game changer”, arguing that it validates Bitcoin legitimacy and could lead to mass adoption. They highlight its potential for inflation protection (inflation of Brazil IPCA was 4.42% in 2024). Figures like the MP Eros Biondini See Bitcoin as an economic modernization tool, aligning with the technological ambitions of Brazil (for example, DREX). They argue that this could attract foreign investments and position Brazil as a cryptographic center.
Surveys show that 18-34 year olds in Brazil are twice as likely to support cryptography policies, considering Bitcoin as coverage against economic instability (for example, recession 2015-2016). The Central Bank of Brazil and economists like Roberto Campos Neto (The former governor of the Central Bank) expresses skepticism, citing the intrinsic lack of Bitcoin and the risks for monetary policy. They fear that losses could destabilize the necessary reserves for the debt service ($ 400 billion in external debt in 2024).
Some in president Lula The coalition is concerned about the political benefits of a volatile asset. Lula administration prioritized budgetary discipline, and the unpredictability of Bitcoin could undermine this. Brazilians over 50, less familiar with crypto (only 10% of ownership for 2024 data), consider bitcoin as speculative and risky, preferring traditional assets such as gold or dollars.
The debate reflects the world divisions of cryptography, with supporters emphasizing innovation and sovereignty, while criticisms focus on stability and systemic risks. If the bill is adopted, Brazil could see an increase in investment in cryptography and the development of blockchain, but faces the risks of market or international decline. Failure to pass could slow down the cryptographic ambitions of Brazil, maintaining the status quo but by avoiding speculative risks. The Multi-Committee Review of the Bill suggests a long road to come, with probable changes.
