Brazil will decide next week if you buy Bitcoin

  • The plan aims to create a financial shield with BTC, reducing the dependence of the dollar.

  • The Central Bank will supervise the reservation guaranteeing maximum transparency.

The Brazilian Congress is prepared for a historical debate on August 20, 2025, since on the table is Law 4501/2024, an initiative that drives investment in Bitcoin (BTC) of 5% of the country’s international reserves (about 17 billion dollars).

This movement defines the ambition of the South American nation for leading the institutional adoption of digital assets in Latin America and shielding its economy against global uncertainty.

The initiative, promoted by congressman Eros Biondini, It focuses on Bitcoin as a strategic asset to protect national finances. He plan It seeks to diversify the coffers of the State, reduce the strong dependence of the US dollar and mitigate the risks associated with geopolitical tensions.

In doing so, Brazil would be ahead of other regional and global powers that could follow their steps, and projects an image of innovation hub to attract capital of the digital asset ecosystem.

Additionally, the proposal responds to a strategic need to protect the Brazilian economy against the volatility of Fíat money and the growing geopolitical risks. And although it is not mentioned in the text of the proposal, this measure is aligned with the “desolarization” policies promoted by the government of President Luiz Inacio Lula da Silva.

The bill assigns the total responsibility for the operation to the Central Bank of Brazil. In that sense, the institution will manage gradual purchases and guard the assets. Its plan is to establish a monitoring system that will use Bitcoin and artificial intelligence technology.

As read in the proposed document, it is sought to establish a National Bitcoin reserve financed with 5% of its international reserves, which according to the reported in March by the Central Bank of Brazil it would reach him to Buy more than 137,000 BTC at the current price of $ 120,000.

Such possession would place it above El Salvador, the only country in Latin America that accumulates Bitcoin as a strategic treasury asset, and would turn Brazil into the third country in the world with more BTC after the United States and China, according to the research firm Bitcoin Treasuries.

Dear Bitcoin holdings of governments with greater possession. Source: Bitcoin Treasuries.

With this, The country would include the digital currency in the financial assets of the National Treasurychasing the following 5 main objectives:

  1. Diversification of assets: incorporate Bitcoin (up to 5% of international reserves) to diversify Brazil’s financial reserves and reduce exposure to geopolitical exchange and risks.
  2. Economic protection: use bitcoin as a coverage asset against economic crises and inflation, following examples such as BTC ETFs in the United States.
  3. Promotion of Bitcoin technology: Promote the use of the block chain in the public and private sectors, encouraging technological innovation and the creation of specialized startups.
  4. Backup for Real Digital (DREX): Guarantee a support for the Brazilian digital currency, integrating Bitcoin into the national financial strategy.
  5. Safety and transparency: Manage Bitcoin stored by the State with advanced technologies such as cold portfolios (Cold Wallets), artificial intelligence for monitoring and protocols to protect against cyber attacks and fraud. It also forces institutions to present and publish “semiannual reports to guarantee transparency.”

If this institutional adoption was completed, Brazil would mark a clear distance from the model implemented by El Salvador. This is because while the Salvadoran reserve depends on the discretionary decisions of President Nayib Bukele and faces questions due to reports of the International Monetary Fund (IMF), The Brazilian initiative is based on a specific legal framework to invest in BTC at the state level.

In any case, despite the potential, the initiative faces an immediate obstacle such as the turbulent internal political. Tensions in Congress threaten to derail or delay debate. This while the financial world will surely observe if Brazil manages to overcome its internal divisions to capitalize on this historical opportunity or if it will let the opportunity to become the first great economy of the region to integrate Bitcoin to its financial strategy.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *