Brazil is taking a significant step towards embracing Bitcoin as a strategic reserve, with the Economic Development Commission set to hold its first hearing on August 20. The proposal, valued at up to $18.6 billion, aims to diversify Brazilian financial assets and protect international reserves from exchange rate fluctuations and geopolitical risks.
The hearing, scheduled for 3:00 p.m. ET, will collect technical perspectives on Bill 4501/24, which seeks to improve Brazilian financial management and competitiveness in the global digital economy. Deputy Luiz Philippe de Orleans e Bragança has requested expert analysis from government agencies and financial institutions regarding the proposed Bitcoin Strategic Reserve (Resbit).
Legislative Framework and Market Context
The legislation, introduced by legislator Eros Biondini, cites successful blockchain integration in countries such as El Salvador, the USA, China, Dubai, and the European Union. The proposal assigns the Brazilian central bank and Ministry of Finance responsibility for custody and requires bi-annual reports on the reform’s performance and risk reviews.
Brazil leads Latin America in crypto adoption, ranking 10th globally, according to the Chainalysis Geography of Crypto Report 2024. The country’s crypto market saw nearly $76 billion in transactions last year, according to data from the Brazilian tax authority. This proposal positions Brazil among nations examining digital assets as a protection against traditional currency fluctuations.
Checking Process and Approval Requirements
Following the August 20 hearing, the proposal will pass through four chamber committees: economic development, science, technology, and innovation, finance and taxation, as well as justice and citizenship of the constitution. Each committee must approve the legislation before it can proceed to a full examination by the chamber.
The legislation requires approval from both the Chamber of Deputies and the Senate to become a law, ensuring a comprehensive review process for the Bitcoin Reserve proposal. The technical input from the hearing will inform the committee’s reviews and potential text changes during the review phases. Orleans e Bragança has requested perspectives from monetary authorities, government officials, representatives of the banking system, and experts to refine the proposal.
As Brazil moves forward with this proposal, it is essential to consider the potential implications of a Bitcoin Strategic Reserve on the country’s economy and financial system. With the hearing scheduled for August 20, the world will be watching as Brazil takes a significant step towards embracing Bitcoin as a strategic reserve.
For more information on this development, visit https://cryptoslate.com/brazil-to-hold-first-hearing-on-proposed-19-billion-bitcoin-strategic-reserve/
