Brazil may allocate $18.5B into Bitcoin as G20 digital asset shift accelerates

Brazil is on track to become the first G20 country to legalise the use of Bitcoin as part of its sovereign reserves, potentially committing up to 5% of its $370 billion in international holdings—equivalent to $18.5 billion—into the digital asset.

A legislative proposal, Bill PL 4501/2024, has already cleared its first hurdle in the Chamber of Deputies.

If approved into law, the bill could redefine how global financial systems treat crypto assets, establishing a structured precedent for Bitcoin to be held alongside gold and foreign currencies in national reserves.

Bitcoin legislation advances in Brazilian Congress

The proposed bill, titled the Strategic Sovereign Bitcoin Reserve (RESBit), would authorise Brazil’s Ministry of Finance and Central Bank to purchase and hold Bitcoin as part of the country’s official international reserves.

The bill highlights Bitcoin’s potential to act as a strategic hedge against macroeconomic volatility and to help diversify reserve portfolios traditionally reliant on fiat currencies and sovereign bonds.

According to the draft text, the RESBit aims to integrate blockchain-based digital assets into state policy while mitigating risks associated with global financial instability.

The bill’s advancement through its first committee represents the first time a top-tier economy has taken formal legislative steps to include Bitcoin in its state reserves.

Up to 5% of $370B reserves may be held in BTC

Under the current framework, the Central Bank would be empowered to hold as much as 5% of Brazil’s $370 billion in foreign reserves in Bitcoin, a move that would inject billions into the digital currency market.

This would amount to a potential $18.5 billion investment in BTC, signalling a sharp pivot in how central banks might view digital assets, not merely as speculative tools but as long-term reserve instruments.

The bill has attracted significant attention on social media, with industry observers pointing out the significance of such a move by a G20 economy.

On 5 June, user pete_rizzo_ noted that “Latin America’s largest economy wants BTC”, underscoring the broader implications of such a development.