Amid the growing popularity of cryptocurrencies in Brazil, the Chamber of Deputies held a hearing for a Bitcoin-linked legislation proposed by Federal Deputy Eros Biodini. The proposed bill considers an allocation of up to 5% of Brazil’s international reserves toward Bitcoin.
During the hearing, Biondini highlighted the project as a way to ensure economic sovereignty, aligning with global innovation trends, and position the country as a global leader. “Brazil is always playing catch-up, but it’s great to see that this time we’re at the forefront,” he said.
The bill has received a favorable stance from several government members and the Deputy of the Economic Development Committee, Luiz Philippe de Orleans e Braganca. It has now been sent for a technical review and refinement stage by a committee before voting in the main chamber.
“I want to make it clear that I have no negative bias toward bitcoin itself,” said Daniel Leal, an official representing Brazil’s Ministry of Finance, adding, “I recognize that it has gained relevance and value. But it’s important to differentiate the purposes. In the case of international reserves, as already explained, the purpose is much more closely linked to the country’s financial stability, managed by the Central Bank.”
The Surging Popularity of Crypto in Brazil
Brazil has been emerging as Latin America’s leading crypto economy, with almost 8% of the population using cryptocurrencies. As the country’s legislature has a positive shift towards digital assets, officials from the Central Bank of Brazil and the Finance Ministry raised concerns over its volatility, liquidity risks, and governance ambiguity.
The Head of the Department of International Reserves at the Central Bank, Luis Guilherme Siciliano said, “Central banks are naturally guided by conservatism. This means that international reserves need to be made up of low-volatility assets. In periods of stress or extreme crises, including geopolitical crises, local markets experience sharp spikes in volatility.”
Last month, the US investigated Brazil’s digital payment system, Pix. It came at a time when it was growing rapidly, and the BRICS nations were pursuing de-dollarization by exploring alternative currencies.
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