On August 20, 2025, Pedro Giocondo Guerra, chief of staff to Brazil’s Vice President Geraldo Alckmin, passionately defended Bill 4501/2024, which proposes allocating up to $19 billion—5% of Brazil’s $343.95 billion foreign exchange reserves—to Bitcoin as a strategic reserve asset. Speaking at the historic public hearing hosted by the Chamber of Deputies’ Economic Development Committee in Brasília, Guerra described Bitcoin as a “revolution for public finances” and a “medicine” for economic challenges, emphasizing its role in enhancing Brazil’s financial resilience. His remarks, amplified by enthusiastic posts on X proclaiming “IT’S HAPPENING!!!,” have ignited excitement in the global crypto community.
With Bitcoin trading at approximately $113,846 as of August 21, 2025, Guerra’s endorsement, backed by the Brazilian Federation of Banks’ chief economist, signals a transformative step toward sovereign Bitcoin adoption. Below, we explore Guerra’s defense, the details of the proposal, and its implications for the cryptocurrency market.
Pedro Giocondo Guerra’s Defense: Bitcoin as a Financial Revolution
During the August 20, 2025, hearing on Bill 4501/2024, Guerra delivered a compelling case for integrating Bitcoin into Brazil’s national reserves, representing the federal government at the swearing-in ceremony of the Parliamentary Front for Competitive Brazil. His key statements, as reported by sources like Decrypt and Bitcoinist, include:
- Bitcoin as Medicine: Guerra described Bitcoin as a “medicine” for public finances, arguing that its digital scarcity and deflationary design—capped at 21 million coins—offer a hedge against currency devaluation and geopolitical risks, unlike fiat currencies that can be printed at will.
- Revolutionary Potential: He called Bitcoin a “revolution for public finances,” highlighting its ability to transfer wealth globally and store value securely, positioning it as “digital gold, the gold of the internet.”
- Public Interest: Guerra stressed that “rigorously debating the constitution of a sovereign reserve of Bitcoin value is in the public interest and will be decisive for our prosperity,” urging lawmakers to treat the proposal with the same seriousness as fiscal and tax reforms.
Guerra’s remarks build on his earlier statements in March 2025, where he called a Bitcoin reserve “crucial for Brazil’s prosperity” at a congressional ceremony. His advocacy aligns with support from Rubens Sardenberg, FEBRABAN’s Chief Economist, though it faces skepticism from Central Bank official Nilton José Schneider David, who cited Bitcoin’s volatility.
Details of Bill 4501/2024: The Strategic Bitcoin Reserve
Introduced by Federal Deputy Eros Biondini in November 2024, Bill 4501/2024 proposes creating a “Sovereign Strategic Bitcoin Reserve” (RESBit) to diversify Brazil’s treasury assets. Key details include:
- Allocation Size: Up to 5% of Brazil’s $343.95 billion foreign reserves, equating to $17.2 billion to $19 billion, or approximately 150,000 to 167,000 BTC at current prices, to be acquired gradually to mitigate volatility risks.
- Custody and Security: The Central Bank of Brazil and Ministry of Finance would jointly manage RESBit, using cold wallets for offline storage, AI-based monitoring for security, and criminal penalties for mismanagement to ensure accountability.
- Additional Objectives: The bill aims to protect against exchange rate fluctuations, promote blockchain adoption in public and private sectors, back Brazil’s digital currency (Drex), and foster educational programs in blockchain and cybersecurity.
- Legislative Process: The bill requires approval from four committees (Economic Development, Science, Technology and Innovation, Finance and Taxation, and Constitution, Justice, and Citizenship), followed by a full Chamber vote, Senate review, and potential approval or veto by President Luiz Inácio “Lula” da Silva.
The August 20 hearing, attended by experts like Diego Kolling (Méliuz) and Julia Rosim (ABcripto), was the first formal discussion, requested by Deputy Luiz Philippe de Orleans e Bragança to gather technical input.
Context: Brazil’s Crypto Leadership and Global Trends
Brazil’s push for a Bitcoin reserve aligns with its position as a crypto powerhouse:
- High Adoption: Brazil ranks 10th globally in crypto adoption per Chainalysis’ 2024 report, with $90.3 billion in cryptocurrency value received in 2024. It leads Latin America, which saw 42.5% crypto growth last year.
- Crypto Infrastructure: Brazil has approved spot Bitcoin ETFs (e.g., FOMO11, HASH11) and launched the world’s first XRP ETF, with trading volumes nearing $76 billion in 2024.
- Global Context: The proposal follows El Salvador’s 5,921 BTC reserve, Bhutan’s 13,000 BTC, and discussions in the U.S., where Senator Cynthia Lummis’s BITCOIN Act and President Trump’s reserve plans signal a global “race” for Bitcoin, as noted by Eric Trump.
Support from FEBRABAN’s Rubens Sardenberg and Vice President Alckmin’s office contrasts with Central Bank skepticism, highlighting a divide that the legislative process will need to bridge.
Market Context and Implications
As of August 21, 2025, Bitcoin is trading at $113,846, down 1.9% in the last 24 hours but up significantly year-to-date. The market is supported by:
- Institutional Inflows: The New York State Common Retirement Fund’s 143% Bitcoin exposure increase, Goldman Sachs’ $1.558 billion in ETF holdings, and Hong Kong’s Ming Shing Group’s $483 million BTC purchase.
- Regulatory Progress: The U.S. Digital Asset Market Clarity Act’s expected 2025 passage and the Federal Reserve’s framework for banks to offer crypto services.
- Global Adoption: Buenos Aires accepting crypto for taxes and corporate moves like Goobit Group’s 10.63 BTC purchase.
Brazil’s potential $19 billion Bitcoin allocation could:
- Drive Prices: Adding significant demand against Bitcoin’s 450 daily issuance post-2024 halving, potentially pushing prices toward forecasts like Brian Armstrong’s $1 million by 2030.
- Establish Leadership: Position Brazil as the world’s largest sovereign Bitcoin holder, surpassing El Salvador and Bhutan, and inspire other nations.
- Boost Market Confidence: Signal to investors that Bitcoin is a legitimate reserve asset, driving further institutional and corporate adoption.
The FOMC minutes, released on August 20, 2025, showed a dovish tilt, increasing expectations for a September rate cut, which could amplify Bitcoin’s bullish momentum.
Implications for Investors
Guerra’s defense and the broader Brazilian proposal offer key insights for crypto investors:
- Bullish Catalyst: A $19 billion Bitcoin reserve could significantly drive prices, supporting long-term forecasts and reinforcing Bitcoin’s role as “digital gold.”
- Volatility Risks: The bill’s multi-stage legislative process may create short-term uncertainty. Monitor committee outcomes and Senate debates.
- Secure Strategies: Use regulated platforms like Coinbase, Kraken, or ETFs like BlackRock’s IBIT, and store assets in hardware wallets to mitigate risks.
- Global Momentum: Track sovereign adoption trends, such as the U.S. and Papua New Guinea, to gauge the pace of the global “race.”
Final Thoughts: Brazil’s Bitcoin Revolution Takes Shape
Pedro Giocondo Guerra’s passionate defense of a $19 billion Bitcoin reserve, calling it a “revolution for public finances” and “medicine” for Brazil’s economy, marks a defining moment in the nation’s crypto journey. Backed by FEBRABAN and Vice President Alckmin’s office, the proposal positions Brazil as a potential global leader in sovereign Bitcoin adoption. As the crypto community celebrates with “IT’S HAPPENING!!!,” the hearing’s outcome could reshape the market landscape.
Investors should stay vigilant, tracking Brazil’s legislative progress and global adoption trends. Stay tuned for updates on Bill 4501/2024, Bitcoin price reactions, and more crypto insights as this transformative story unfolds.
Disclaimer: This article is for informational purposes only and not financial advice. Cryptocurrency investments carry risks.