Brazil's Federal Chamber of Deputies will hold a public hearing on August 20 to consider the possibility of diversifying part of the country's national reserves into Bitcoin.
The plan envisions Brazil's Central Bank purchasing Bitcoin over time, increasing its share of the cryptocurrency to 5% of the country's foreign exchange reserves. The bill cites examples of steps taken by countries like the United States and El Salvador to integrate cryptocurrencies into their national financial management strategies.
The proposed law requires that purchased Bitcoin be stored in cold storage and that all transactions be publicly reported. However, the bill does not specify a timeline for when or under what circumstances Bitcoin holdings could be sold.
The US recently took a similar step, but stated that BTC could only be purchased without creating an additional burden on taxpayers. This generally means a reserve will be established from confiscated Bitcoin. The US reserve, on the other hand, also pledges not to sell BTC.
*This is not investment advice.
