Brazil is initiating discussions on a bill that could lead to the establishment of a national Bitcoin reserve. This step is aimed at protecting the country's reserves from currency volatility.
Discussion of the Bill
On August 20, 2025, Brazil's House of Representatives is set to hold public hearings regarding a bill that proposes the creation of a national Bitcoin reserve. The proposal was introduced in November 2024 and aims to allocate up to 5% of the country’s reserves, approximately $15 billion. Participants include representatives from the Central Bank of Brazil, the Ministry of Finance, and fintech organizations.
International Trends
The introduction of a Bitcoin reserve in Brazil is part of a global trend initiated by U.S. President Donald Trump's executive order to create a national strategic reserve. Similar plans have emerged in countries like Kazakhstan, India, and Sweden. However, the proposal has sparked mixed opinions, with support from government officials and caution from the central bank.
Institutional Investments in Bitcoin
Institutional investors are also showing interest in Bitcoin. Michigan’s State Retirement System has increased its exposure to Bitcoin through the ARK 21Shares ETF to $11.3 million. Additionally, public pension funds, including Wisconsin’s $321 million investment, are driving a surge in crypto ETF inflows. These trends, alongside the recent rise in Bitcoin prices, suggest increasing institutional confidence in crypto assets.
The discussion on creating a Bitcoin reserve in Brazil could become a significant step in the country's crypto investment landscape and reflects global changes in attitudes toward digital assets. Watching the developments in this situation will be important.
