Brazil Eyes $19B Bitcoin Strategic Reserve to Counter Dollar Reliance

     

Lawmakers Weigh Bitcoin as National Hedge, Debate RESBit Bill Amid Global Reserve Race

Brazil is advancing plans for a massive $19 billion Bitcoin strategic reserve, dubbed RESBit, as lawmakers test whether the cryptocurrency can serve as both a hedge against the U.S. dollar and a tool for fiscal modernization.

During an August 20 public hearing in Brasília, the Chamber of Deputies’ Economic Development Commission gathered economists, policymakers, and industry leaders to debate Bill 4501/24, which would establish Bitcoin under the stewardship of the Central Bank of Brazil and the Finance Ministry. Proponents argue the reserve could insulate the country from currency volatility, strengthen financial sovereignty, and align Brazil with a growing global trend of sovereign crypto holdings.

If passed, Brazil would join El Salvador, the U.S., China, and the EU in exploring state-level Bitcoin adoption, signaling a profound shift in how governments treat digital assets.

$19B Reserve Proposal Sparks Transparency and Oversight Concerns

The initiative, authored by Deputy Eros Biondini and debated by Deputy Luiz Philippe de Orleans e Bragança, envisions building a Bitcoin stockpile valued at $18.6 to $19 billion. Officials described Bitcoin as a “digital commodity” comparable to gold, designed to diversify reserves and provide stability during geopolitical or financial shocks.

Under the bill, both the Central Bank and Finance Ministry would manage custody and liquidity while issuing biannual reports detailing risks, performance, and strategic outcomes. Lawmakers said such transparency could build trust and integrate Bitcoin into Brazil’s broader fiscal framework.

However, experts warned about volatility, cybersecurity, and fiscal trade-offs. Critics argued allocating nearly $19 billion into Bitcoin might strain budgets for infrastructure and social programs while exposing state finances to sudden market downturns. The proposal must clear four key committees before advancing, leaving room for revisions and political wrangling.

Latin America’s Crypto Momentum Pushes Brazil Into Spotlight

Brazil already ranks 10th globally for crypto adoption, with over $76 billion in crypto transactions recorded last year. Lawmakers see RESBit as an extension of this momentum, putting the country at the forefront of Latin America’s digital asset strategy.

Neighboring nations like Argentina and Venezuela have embraced Bitcoin and stablecoins to hedge inflation and bypass dollar dependency, while El Salvador remains the poster child of sovereign Bitcoin adoption despite fluctuating retail usage.

Meanwhile, the U.S. and China quietly hold hundreds of thousands of Bitcoin through state seizures, highlighting the shift toward treating digital assets as strategic reserves rather than speculative bets.

If Brazil moves forward, RESBit could represent one of the largest sovereign Bitcoin allocations ever attempted, testing whether crypto can transform from a volatile investment to a cornerstone of national economic security.