Brazil’s Central Bank Blocks Bitcoin Reserve Plans over Stability Concerns

Bitcoin won’t be joining Brazil’s national reserves anytime soon. The Central Bank’s Director of Monetary Policy, Nilton David, stated that the asset’s volatility could threaten the nation’s financial security and disrupt long-term stability.

The Central Bank’s rejection directly addressed a bill by Eros Biondini, which proposed launching RESBit—a national Bitcoin reserve. The proposal would allow Brazil to allocate up to 5% of its international reserves into BTC, gradually over time.

Biondini argues that adding Bitcoin to the reserves would help shield the economy from currency devaluation and geopolitical disruptions, while serving as a tool for risk diversification.

To ensure asset security, the bill mandates storage in cold wallets only, with transaction oversight provided by AI systems. It also calls for a multi-disciplinary advisory council, including experts in blockchain, cybersecurity, and the digital economy.

Check this out: Brazilian CVM Greenlights Hashdex’s XRP ETF

Though Brazil’s central bank remains cautious, the proposal to establish a Bitcoin reserve has attracted support from analysts who consider digital gold a means to reinforce Brazil’s economic resilience in global markets.

This divergence in outlook highlights a broader international debate around the evolution of the financial system, pitting institutional risk-aversion against technological innovation.

Global Approach to Bitcoin Reserves

When the U.S. unveiled its strategic Bitcoin reserve, the move lit a fire under the global finance community. Brazil, however, has taken a more restrained path—choosing the comfort of conventional reserves and conducting a slow, deliberate risk assessment of crypto’s role in the public treasury.

This split isn’t Brazil’s alone. Major economies like Japan and Sweden have also kept their distance from crypto in national reserves, adopting a wait-and-watch posture. Meanwhile, Brazil has begun tightening its own guardrails, limiting crypto purchases for select pension funds to shield public savings from potential fallout.

Read on: No Bitcoin Reserves for Japan: Here’s What the PM Said

Despite its promise, Brazil’s Bitcoin reserve proposal is facing headwinds. From power struggles in Brasília to diverging opinions on regulatory risk, the obstacles are as real as the opportunity.

How lawmakers vote will say a lot about Brazil’s stance on digital assets—and whether the country is ready to bring crypto into the heart of its national economy.