Brazil's Chamber of Deputies has scheduled a public hearing for August 20, 2025, to discuss a proposal for creating a national strategic reserve in Bitcoin.

The proposal aims to allocate up to 5% of Brazil's foreign exchange reserves into Bitcoin, potentially amounting to an investment of approximately $15 billion.

Supporters argue that this initiative would diversify Brazil's reserves and enhance digital innovation, while critics raise concerns about cryptocurrency volatility and regulatory risks.

The outcome of the public hearing will be crucial for the bill's progress through the Economic Development Commission and Congress before it reaches President Luiz Inácio 'Lula' da Silva for approval.

The hearing will feature discussions among government officials, financial experts, and crypto industry representatives to evaluate the potential risks and benefits of the proposal.

This initiative reflects a broader global conversation regarding the role of cryptocurrencies in central banking and national economic strategies.

Brazil has positioned itself as a leader in the Americas for cryptocurrency, having authorized multiple cryptocurrency ETFs and investment options.

The proposed Bitcoin reserve is intended to safeguard international reserves from exchange rate fluctuations and geopolitical risks, while promoting blockchain technology.

This proposal is part of ongoing legislative efforts to regulate cryptocurrencies in Brazil, with several related bills currently under review.

The proposal has received mixed reactions, with some officials supporting it as a step towards embracing digital assets, while others urge caution due to economic uncertainties.

Participating institutions in the upcoming hearing include the Central Bank of Brazil, the Ministry of Finance, and representatives from the fintech and banking sectors.

The outcome of this initiative could influence regulatory trends in Latin America and beyond, potentially setting a precedent for other nations.