In a pioneering move, Brazil has introduced a landmark bill in its Chamber of Deputies to establish a Bitcoin Sovereign Strategic Reserve. This proposal, spearheaded by federal deputy Eros Biondini, aims to allocate up to 5% of the country's international reserves—valued at approximately $370 billion—to Bitcoin, positioning Brazil as the first G20 nation to adopt such a policy.
The bill, which was first introduced in late November 2024, has already passed its initial committee review as of June 12, 2025, signaling growing institutional recognition of Bitcoin as a strategic asset. Proponents argue that this reserve could enhance economic stability and serve as a hedge against global financial uncertainties, while also supporting the development of a Central Bank Digital Currency (CBDC).
If enacted, Brazil would join a small but growing list of nations embracing Bitcoin at a sovereign level, potentially aligning itself with countries like El Salvador, which has already adopted Bitcoin as legal tender. The move is seen as a bold step toward digital asset diversification in national reserves, reflecting a broader shift in global financial strategies.
However, the proposal has sparked debate, especially in light of Brazil's recent introduction of a 17.5% flat tax on crypto gains, which some critics argue creates a contradictory policy. Lawmakers like Biondini have also proposed scrapping crypto taxes for long-term investors to encourage adoption and investment in digital assets.
The bill's progress through Congress is being closely watched by global markets, as it could set a precedent for other nations considering similar reserves. Analysts suggest that a successful implementation might boost Bitcoin's legitimacy as a reserve asset and influence cryptocurrency adoption worldwide.
As discussions continue, the Brazilian government faces the challenge of balancing innovation with regulatory oversight. The outcome of this bill could redefine Brazil's role in the global financial landscape, marking a historic moment in the intersection of cryptocurrency and national policy.
Alfred Lee
