Brazil plans to allocate 5% reserves to Bitcoin
Brazil moves to allocate 5% of reserves to Bitcoin under new bill
Brazil is on the brink of a monumental shift in global financial policy, as Bill PL 4501/2024—which would allow the allocation of up to 5% of Brazil’s $370 billion international reserves into Bitcoin—advances through the Chamber of Deputies.
If passed, Brazil would become the first G20 nation to formally integrate Bitcoin (BTC) into its sovereign reserve management strategy, setting a precedent for institutional adoption at the national level, reports BeInCrypto.
The proposed Strategic Sovereign Bitcoin Reserve (RESBit) aims to diversify reserve assets, mitigate macroeconomic risks, and legally enshrine BTC as a component of national policy.
Legislative over executive: a new model of crypto integration
Unlike El Salvador’s top-down, executive-led Bitcoin initiative, Brazil’s approach is legislative and institutional, signaling a more stable and potentially exportable framework for other economies. The bill empowers both the Central Bank and Ministry of Finance to manage BTC allocations, suggesting a coordinated policy-level approach to sovereign crypto investment.
Proponents argue this could redefine Brazil’s reserve diversification in the face of global inflation and dollar dependence, while also helping Latin America’s largest economy assert financial independence through crypto-native reserves.
Global implications and G20 ripple effect
The bill’s momentum has triggered wide speculation about “Sovereign Bitcoin Phase 2”—a global shift from early, high-risk experimentation to institutional-grade crypto adoption. If codified into law, Brazil’s model could inspire G20 peers to follow suit, especially amid growing concerns over fiat stability, shifting trade dynamics, and the need for alternative monetary hedges. Industry voices have emphasized the move’s significance. As pete_rizzo_ noted, “Latin America’s largest economy wants BTC. This is huge.” Meanwhile, @shanaka86 underscored that this is “not El Salvador 2.0” but a scalable blueprint with systemic implications.
A new chapter for Bitcoin as a global reserve asset
With Brazil’s Chamber of Deputies preparing for further deliberation, the world is watching to see whether Bitcoin will formally join gold and U.S. treasuries in sovereign portfolios. Should the bill become law, it could catalyze institutional flows, bolster BTC’s role in global macro strategy, and establish Brazil as a leader in financial innovation. In the words of market watchers, this moment may represent the start of a new era in global asset allocation—where Bitcoin is no longer an outlier, but reserve-grade by law.
Recently we wrote that Japan, long known for its deep-rooted reliance on physical money, is witnessing a major cultural and technological shift.
