The Chamber of Deputies of Brazil will hold its first public hearing on August 20 regarding a legislative proposal that would incorporate Bitcoin (BTC) into national reserves. The plan arises as more and more countries around the world consider Bitcoin a strategic asset.
Bitcoin as a strategic reserve
The proposal, known as Bill 4501/2024, was presented by Deputy Eros Biondini. It seeks for the Central Bank and the Ministry of Finance to jointly establish a Bitcoin reserve, with a maximum of five percent of international reserves. The storage would be done in a 'cold wallet' to meet international security standards.
The hearing is being organized by the Economic Affairs Commission of Parliament. Luiz Philippe de Orleans e Bragança, who requested the debate, wants public and private experts to share their perspectives on the proposed legislation.
According to proponents, the Bitcoin reserve should not only provide diversification but also serve as a 'macroeconomic shield' in times of global uncertainty. Furthermore, the proposal aims to promote innovation in the blockchain field through educational programs, startup initiatives, and public-private collaborations.
If the proposal is approved by the Chamber, it moves to the Senate. If approved without amendments, the President can confirm it directly. Amendments lead to an additional round of voting in the Chamber.
More countries are choosing Bitcoin
Brazil's proposal is not the only one. Increasingly, countries around the world are taking steps to include Bitcoin in their national reserves. According to data from BitcoinTreasuries, Bhutan currently holds 10,769 BTC. El Salvador, which adopted Bitcoin as legal tender in 2021, holds 6,260 BTC.
In the United States and China, for now, the focus is primarily on confiscated cryptocurrencies that (still) are not officially part of government reserves.
Other countries are also considering a similar measure. These include the Czech Republic, Argentina, Russia, Switzerland, Poland, and Pakistan, which are exploring the possibility of including Bitcoin in their financial reserves.