Recently, Nilton David, Brazil's director of monetary policy at the central bank, dismissed the notion of adding cryptocurrencies to the country’s foreign reserve assets, calling it an inappropriate strategy.
This comes in contrast to the U.S.’s recent move to establish a Bitcoin reserve, a decision that hasn’t been followed by other major economies. Countries like Sweden and Japan have made it clear they aren’t rushing to adopt digital assets for reserves, signaling caution in the global financial community.
At the same time, Brazilian lawmaker Eros Biondini has pushed forward a bill aimed at creating a strategic Bitcoin reserve, which would allow the country to allocate as much as 5% of its international reserves into the leading cryptocurrency.
The proposal includes robust cybersecurity measures and AI-driven surveillance for the reserve. Advocates believe the initiative could not only help mitigate potential economic risks but also elevate Brazil’s standing in the global financial system, attracting foreign investment. However, it remains uncertain if the proposal will gain traction in the legislative process.
On the flip side, Pedro Giocondo Guerra, a prominent official within the Lula administration, has publicly supported the creation of a Bitcoin reserve, calling the digital asset “digital gold.” Guerra argues that such a reserve could play a pivotal role in ensuring Brazil’s economic prosperity.
Yet, while some push for embracing Bitcoin, the National Monetary Council (CMN), Brazil’s top financial regulatory body, has taken a more cautious approach, recently prohibiting certain pension funds from investing in Bitcoin due to concerns over its inherent volatility and risks.
Popular crypto analyst Il Capo of Crypto has issued a cautionary outlook for the digital asset market, warning of deeper corrections ahead as macroeconomic pressures return to the spotlight.
As Bitcoin briefly slipped to $103,000 last week, Strategy—the largest corporate BTC holder—seized the opportunity to grow its reserve.
Bitcoin’s recent price dip has stirred fresh debate around its connection to global liquidity, with analysts highlighting the relationship between BTC’s trajectory and the expanding M2 money supply.
On-chain analyst Willy Woo is signaling a possible cooldown in Bitcoin’s trend, suggesting the asset could be heading into a prolonged consolidation phase if it doesn’t reclaim strength soon.