๐ข Historic News in Brazil! ๐ง๐ท๐ฐ
Today, August 20, 2025, the National Congress holds the first public hearing on Bill 4501/2024, which proposes the creation of a strategic reserve in Bitcoin.
๐ The proposal aims to allocate up to 5% of the country's foreign reserves โ about US$ 17 to 18.6 billion โ for the purchase of BTC.
Great, I will detail this historic debate further ๐
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๐ What is being discussed?
Bill 4501/2024 proposes that the Central Bank of Brazil may allocate up to 5% of international reserves (currently around US$ 370 billion) in Bitcoin. This means an estimated purchase between US$ 17 and 18.6 billion in BTC.
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๐ Motivations for the project
1. Diversification of foreign reserves
โข Currently, Brazil's reserves are almost entirely in dollars, euros, and gold.
โข Bitcoin would be an additional form of protection against risks of the traditional financial system.
2. Protection against inflation and global crises
โข Proponents argue that BTC acts as โdigital gold,โ preserving value in times of instability.
3. Strengthening of economic sovereignty
โข Reduces dependence on the dollar.
โข Positions Brazil as a strategic player in the cryptocurrency landscape.
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โ๏ธ Arguments in favor
โข Could increase Brazil's prestige as a pioneer among emerging economies.
โข Creation of a strategic advantage over other countries considering the same movement (Argentina, Russia, and some African countries).
โข Potential for BTC appreciation in the long term, generating profit for the country.
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๐ International impact
โข If approved, Brazil will be the first major G20 country to have an official reserve in BTC.
โข This may pressure other countries to consider the same path.
โข The crypto market may react positively, attracting institutional investors.
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