Brazil’s Central Bank Rejects Bitcoin for National Reserves: Too Risky (2025 Update)

• Why Is Brazil's Central Bank Opposed to Bitcoin Reserves?
• How Does Brazil's Crypto Tax Policy Create Contradictions?
• What's the RESBit Proposal All About?
• Who Are the Key Players in This Debate?
• What Does This Mean for Brazil's Crypto Future?
• Frequently Asked Questions

Brazil's financial authorities are locked in a high-stakes debate over whether to allocate $18.6 billion of national reserves to Bitcoin. While government progressives push for crypto adoption, the Central Bank maintains its firm stance against what it calls "speculative assets." This clash represents a microcosm of the global struggle between monetary traditionalists and crypto revolutionaries.

Why Is Brazil's Central Bank Opposed to Bitcoin Reserves?

The Central Bank of Brazil isn't mincing words about Bitcoin. Luís Guilherme Siciliano, Director of International Reserves, categorically rejects the idea, citing IMF classifications that group BTC with "non-financial, non-produced assets" like land or minerals. "This isn't about innovation—it's about stability," Siciliano stated during August 2025 parliamentary hearings. The bank's position contrasts sharply with government progressives who view bitcoin as "digital gold" and a hedge against dollar dominance.

How Does Brazil's Crypto Tax Policy Create Contradictions?

Since June 2025, Brazil enforces a flat 17.5% capital gains tax on all crypto transactions—no exemptions. Retail investors feel particularly squeezed, especially while watching the government consider massive Bitcoin purchases. "They're taxing our profits to fund their own crypto bets," complained one trader on X. TradingView charts show Brazilian crypto volumes dipped 12% post-tax implementation, though the nation still ranks 10th globally in crypto adoption with $76 billion in 2024 transactions.

What's the RESBit Proposal All About?

The controversial RESBit bill (No. 4501/2024) WOULD authorize the Central Bank to allocate up to 5% of foreign reserves (~$19 billion) to Bitcoin. August 2025 hearings brought together finance ministers, Bitso exchange representatives, and ABcripto association members. Proponents argue this could position Brazil alongside crypto-forward nations like El Salvador. Critics warn of volatility—BTC's 30-day swings averaged 8.7% in July 2025 according to CoinMarketCap data.

Who Are the Key Players in This Debate?

Two figures embody the divide:(VP's Chief of Staff): "A sovereign Bitcoin reserve is vital for Brazil's prosperity in the digital age.": "Our mandate is preserving value, not gambling with public funds."

The BTCC research team notes this isn't purely a Brazilian phenomenon—similar debates rage in U.S. states like Arizona, where Governor Katie Hobbs recently vetoed a Bitcoin reserve bill for the third time.

What Does This Mean for Brazil's Crypto Future?

Despite regulatory headwinds, Brazil's crypto ecosystem thrives. Local exchanges processed 1.2 million BTC trades in Q2 2025 alone. The real question isn't whether Brazilians will adopt crypto (they already are), but whether their government will lead or lag this transformation.

Frequently Asked Questions

Why does Brazil's Central Bank oppose Bitcoin reserves?

The Central Bank views Bitcoin as too volatile for national reserves, citing IMF classifications that categorize it alongside commodities rather than financial assets.

How much Bitcoin might Brazil purchase if approved?

The RESBit proposal suggests up to 5% of foreign reserves (~$18.6 billion), though this faces significant opposition.

What's the crypto tax rate in Brazil?

Since June 2025, Brazil imposes a 17.5% flat tax on all cryptocurrency capital gains with no exemption thresholds.