Catenaa, August 21, 2025 – Brazil is considering the creation of a $19 billion strategic Bitcoin reserve, termed RESBit, as lawmakers and experts debated the proposal at a public hearing in Brasília on August 20.
The initiative aims to modernize Brazil’s treasury management, diversify financial reserves, and hedge against currency volatility, sources said.
The proposal, introduced as Bill 4501/24, envisions oversight by the Central Bank of Brazil and the Ministry of Finance, with biannual reporting on risk exposure and performance.
Lawmakers highlighted international examples, including El Salvador’s legal tender adoption and pilot Bitcoin reserve programs in the US, China, and Dubai, framing RESBit as part of a global movement to integrate cryptocurrencies into sovereign balance sheets.
Proponents said the initiative could reinforce financial sovereignty and provide a safeguard against inflation and U.S. dollar dominance.
Critics warned that allocating nearly $19 billion to Bitcoin could expose public finances to volatility and limit funding for social and infrastructure programs.
Experts emphasized robust custody frameworks, liquidity management, and cybersecurity protections as essential for mitigating risk.
RESBit must clear four committees—the Economic Development Commission, Science, Technology, and Innovation, Finance and Taxation, and Constitution, Justice, and Citizenship—before advancing to a full Chamber vote.
Analysts noted that Brazil already leads Latin America in crypto adoption and trading, with nearly $76 billion in transactions in 2024, suggesting a strong domestic foundation for the proposed reserve.
If approved, Brazil would join a growing list of nations exploring government-backed Bitcoin holdings, signaling a shift toward strategic digital asset reserves as part of long-term economic planning.
