Brazil is advancing a legislative proposal to allocate 5% of its foreign reserves—approximately $17 billion—into Bitcoin, positioning the nation to potentially become the world’s largest sovereign holder of the cryptocurrency.
The bill, which completed a formal public hearing process in August 2024, calls for unprecedented cryptocurrency exposure within Brazil’s strategic reserves. If approved, the move would eclipse El Salvador’s government Bitcoin holdings and signal a seismic shift in national asset management.
This initiative has ignited intense debate among economists and policymakers. Advocates argue it diversifies national assets and accelerates blockchain adoption, while critics express concerns about market volatility implications and fiscal prudence regarding public reserve management.