In Brazil, discussions are underway to consider a bill that would allocate part of international reserves to support Bitcoin, viewed as a move towards increasing economic sovereignty.
Proposed Legislation
Members of Brazil's Chamber of Deputies have held a hearing on a bill proposed by Federal Deputy Eros Biondini, which suggests allocating up to 5% of the country's international reserves to Bitcoin. Biondini emphasized that the bill aims to ensure economic independence and position Brazil as a global leader in crypto innovation.
CITE_W_A: "Brazil is always playing catch-up, but it’s great to see that this time we’re at the forefront."
Rising Popularity of Crypto in Brazil
Brazil is emerging as Latin America's leading crypto economy, with nearly 8% of the population using cryptocurrencies. However, legislative shifts raise concerns regarding volatility and governance among officials from the Central Bank and the Finance Ministry.
Official Opinions and Concerns
Finance Ministry officials have expressed a favorable stance towards the bill while raising concerns about stability. Daniel Leal stated that it's important to differentiate the purposes of using Bitcoin and emphasized that reserves should consist of low-volatility assets.
Luis Guilherme Siciliano, head of the Department of International Reserves at the Central Bank, noted: "Central banks are naturally guided by conservatism. This means that international reserves need to be made up of low-volatility assets."
The proposed bill to allocate part of Brazil's international reserves to Bitcoin raises critical questions about financial stability and the future of cryptocurrencies in the country. Ongoing discussions will determine the final decisions.
