Why Brazil May Put 5% of Its $370 Billion Reserves into Bitcoin

Brazil is poised to become the first G20 nation to allocate up to 5% of its $370 billion international reserves into Bitcoin, following the rapid progress of a landmark legislative bill. This development signals growing institutional momentum and could reshape how global economies approach digital assets.

With the bill already clearing its first committee, Brazil’s bold move has captured the attention of financial policymakers, cryptocurrency advocates, and observers worldwide. If the bill becomes law, it could transform sovereign wealth management and influence future digital asset strategies across the globe.

Historic Legislation: Brazil’s Strategic Bitcoin Reserve

Currently moving through the Brazilian Chamber of Deputies, Bill PL 4501/2024 seeks to create a Strategic Sovereign Bitcoin Reserve (RESBit). The proposed policy empowers the Central Bank and Ministry of Finance to allocate up to 5% of official reserves into Bitcoin, treating the cryptocurrency as a strategic hedge. According to the complete legislative text, the bill aims to strengthen diversification, reduce macroeconomic risk, and incorporate crypto into national policy.

Unlike previous initiatives like El Salvador’s executive-driven Bitcoin purchases, Brazil’s effort is legislated through Congress. This approach could provide a more robust and lasting structure for integrating digital assets into national financial systems.

“Latin America’s largest economy wants BTC. This is huge,” pete_rizzo_ posted.

The passage through the committee marks a historic milestone. This is because, for the first time, a major economy is codifying Bitcoin into law as a sovereign reserve asset. This move, therefore, not only distinguishes Brazil but also sets a precedent for other G20 nations.

This unprecedented momentum has ignited global debate about Bitcoin’s expanding role in sovereign wealth portfolios. As major institutions and crypto industry leaders watch closely, Brazil’s initiative could become a blueprint for policy integration at scale, stretching its influence far beyond Latin America.

“Brazil turning Bitcoin into a strategic reserve asset could trigger serious global copycat behavior. This is not El Salvador 2.0.This is Sovereign Bitcoin Phase 2 reserve-grade codification,” shanaka86 posted.

The bill now proceeds to the Chamber of Deputies.

Should Brazil enact this law, it would mark a new chapter for global digital asset management. Bitcoin could soon have a formal seat beside traditional reserves, redefining financial strategy in one of the world’s largest economies.