Brazilian lawmakers propose allocating 5% of foreign exchange reserves to Bitcoin, and the central bank expresses concerns

ChainCatcher news, Brazilian legislators held a hearing on Bill 4501/2024, which proposes to allocate up to 5% of the country's international reserves (approximately $16.4 billion) to Bitcoin. These reserves would be managed by the Central Bank of Brazil and the Ministry of Finance.

However, the Central Bank of Brazil has expressed concerns, stating that the high volatility of Bitcoin could undermine the credibility of its monetary policy. Therefore, the bill is currently under further review.