Brazil’s central bank opposes Bitcoin strategic reserves, saying Bitcoin’s high volatility affects the credibility of monetary policy

On August 21st, the Brazilian Chamber of Deputies held a session to deliberate on Bill No. 4501/2024, which recommends dedicating up to 5% of international reserves to Bitcoin. The Central Bank’s officials emphasized that Bitcoin’s high volatility poses risks to the credibility of their monetary policies.

As it stands, the bill is pending additional review, with the Central Bank firmly opposing any measures that might jeopardize the stability of Brazil’s financial system. The ongoing discussions indicate a cautious approach towards cryptocurrency integration into state reserves.