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Crypto Prune > Regulation > Brazil will decide whether to buy Bitcoin next week
Regulation

Brazil will decide whether to buy Bitcoin next week

5 months ago 4 Min Read

The Brazilian Parliament is being prepared for historic discussion on August 20, 2025. This is an initiative to promote investment in Bitcoin (BTC) of 5% of the country’s international reserve (approximately $17 billion), so it prepares for the historic debate on August 20, 2025.

The movement leads the institutional adoption of digital assets in Latin America and defines the South American national ambitions to protect the economy against global uncertainty.

The initiative promoted by MP Eros Biondini; It focuses on Bitcoin as a strategic asset to protect the national finances. The plan seeks to diversify state funding, reduce strong US dollar dependence, and reduce risks associated with geopolitical tensions.

In doing so, Brazil will go ahead of other regional and global forces that can follow their steps and project the image of an innovation hub to attract capital in the digital asset ecosystem.

Furthermore, the proposal addresses the strategic need to protect the Brazilian economy from Fear’s money volatility and growing geopolitical risks. And, although not mentioned in the text of the proposal, the measure is consistent with the “decoration” policy promoted by President Luis Inacio Lula da Silva’s government.

The bill assigns the general responsibility for the operations to the Central Bank of Brazil. In that sense, institutions manage staged purchases and protect their assets. The plan is to establish a surveillance system that uses Bitcoin and artificial intelligence technology.

As read in the proposed document, it is about to establish a national Bitcoin Reserve funded by 5% of international reserves. Buy over 137,000 BTC The current price is $120,000.

See also  Colombia's debate refers to cryptocurrency financial reform

Such ownership places it on El Salvador, the only country in Latin America to accumulate Bitcoin as a strategic financial asset, and turns Brazil into a third country in the world with more BTC after the US and China.

With this Countries include digital currency asset in the national treasurychases the following five main objectives:

  1. Diversification of assets: Incorporate Bitcoin (up to 5% of international reserves), diversify Brazil’s financial reserves, reducing geopolitical exchanges and exposure to risks.
  2. Economic Protection: Following examples such as the US BTC ETF, we use Bitcoin as a coverage asset against economic crisis and inflation.
  3. Promoting Bitcoin Technology: Promoting the use of blockchain in the public and private sectors, promoting innovation and the creation of professional startups.
  4. Real Digital (DREX) Backup: Guaranteed support for Brazilian digital currency and integrate Bitcoin into national financial strategy.
  5. Safety and Transparency: Manage state-stored Bitcoin with advanced technologies such as cold portfolios (cold wallets), artificial intelligence for surveillance, and protocols to protect against cyberattacks and fraud. The agency also forces them to present and publish a “semi-annual report” to ensure transparency.

Once the agency is adopted, Brazil will mark a clear distance from the model implemented by El Salvador. This is because Salvador’s reserves rely on President Naive Bukere’s discretionary decision and face questions reported by the International Monetary Fund (IMF). The Brazilian initiative is based on a specific legal framework for investing in BTC at the state level.

In any case, despite the possibilities, the initiative faces immediate obstacles: turbulent internal politics. Congressional tensions threaten to derail or delay debate. This ensures that the financial world is successful in overcoming its internal sectors to exploit this historic opportunity, or whether it will give it the opportunity to become the region’s first big economy to integrate Bitcoin into its financial strategy.

See also  Cecabank launches Bitcoin service, Ether and USDC

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