Brazil struggles over Bitcoin: Central Bank warns of risks to reserves!

Brazil struggles over Bitcoin: Central Bank warns of risks to reserves!

The discussion about the future of Bitcoin and its role in Brazil's national reserves is gaining momentum. According to a report by Trend pirates The Brazilian central bank classifies Bitcoin as too risky for national reserves. The bank argues that Bitcoin does not meet stability-oriented standards and is considered a speculative asset, raising concerns about its use in government finance.

The political landscape in Brazil is divided. While the government sees opportunities in Bitcoin, regulators warn about the risks and high volatility of this cryptocurrency. As part of the discussions around a possible RESBit plan, up to 5% of the currency reserves could be invested in Bitcoin, which corresponds to an amount of about 19 billion USD. Estimates for a Bitcoin package are up to $18.6 billion, depending on market conditions and political agreement.

Public debate and international reactions

A public hearing on August 20, 2025 marked the start of a comprehensive parliamentary debate on regulation and risk management in the Bitcoin sector. Brazil currently ranks 10th in the world in terms of crypto adoption, with a trading volume of around USD 76 billion in 2024. However, a newly introduced uniform crypto profits tax of 17.5% since June 2025 is particularly burdening small investors.

Major international banks and tech financiers are closely following developments in Brazil, while different approaches exist in the US and Latin America regarding the handling of crypto reserves. Future steps to regulate Bitcoin in national reserves are already being planned.

Digital currency pilot project

In addition to the Bitcoin debate, Brazil has confirmed plans for a pilot project to introduce a central bank digital currency, the digital real. According to a report by Heise The Brazilian central bank, led by Roberto Campos Neto, will mint a limited amount of digital reais in the second half of 2023. This currency will be pegged to the national fiat payment system STR (Reserve Transfer System), which is central to money transfers in Brazil.

Brazil will therefore be the first country in South America to implement such a project. While cryptocurrencies are currently viewed as an investment rather than a means of payment, Brazilian authorities are also working on a draft law to regulate the cryptocurrency market. Among other things, this should establish clear definitions of digital assets and control responsibilities.

In a global context, several central banks are currently exploring the introduction of digital currencies to ensure control over money. Countries such as Mexico, China and Japan are also planning to launch digital variants of their currencies.