Brazilian Bill Proposes Allocating Reserves to Bitcoin

The Brazilian House of Representatives recently held a hearing regarding Bill 4501/2024, which proposes allocating up to 5% of the country’s international reserves – around $16.4 billion – to Bitcoin. The bill would transfer this responsibility to both the Central Bank and the Ministry of Finance. However, the Central Bank has voiced opposition to this proposal, citing Bitcoin’s high volatility as a major concern and the potential impact on the credibility of monetary policy. The bill is currently undergoing further review.