Following the United States' recent decision to establish Bitcoin reserves, Brazil finds itself at the center of discussions about diversifying international reserves with cryptocurrencies.
Central Bank's Rejection
Nilton David, the director of monetary policy at Brazil's central bank, stated that including cryptocurrencies in reserve assets would be an inappropriate move. This comes after similar skepticism from Japan and Sweden.
Congressional Proposal
Brazilian lawmaker Eros Biondini introduced a bill proposing the creation of a strategic Bitcoin reserve. The legislation would allocate up to 5% of the country's international reserves to the leading cryptocurrency, safeguarded with advanced cybersecurity measures and AI-based monitoring.
Pension Funds Regulation
The National Monetary Council of Brazil banned some pension funds from having any exposure to Bitcoin due to the risks associated with the volatile cryptocurrency.
However, the final decision on creating a Bitcoin reserve and its potential impact on Brazil's financial system has yet to be made. The country is still weighing the pros and cons of this ambitious step.
