PT Deputies Block Brazil’s Bitcoin Sovereign Reserve, Delay Vote

TLDR:

• Brazil’s Workers’ Party deputies requested removal of the Bitcoin Sovereign Reserve bill from the agenda, delaying committee approval.
• Lawmakers argued that allocating up to 5% of reserves in Bitcoin could trigger volatility and fiscal risks.
• The rapporteur supported the bill, noting the proposal’s small allocation would allow controlled testing of Bitcoin as reserves.
• No new date has been set for review, but adjustments will be made to address opposition from Brazil’s Workers’ Party.

Brazil’s debate over holding Bitcoin in its national reserves hit a roadblock this week. Lawmakers from the Workers’ Party (PT) stepped in and halted a vote on the proposed Sovereign Reserve of Bitcoin. They argued the project needed more discussion, citing risks to the country’s economy. 

The Economic Development Committee had been expected to move the bill forward but instead postponed it. For now, the proposal is left waiting, with no clear timeline for its return.

PT Deputies Raise Concerns Over Bitcoin Reserve

During a meeting on August 27, members of Brazil’s Economic Development Committee were expected to decide whether the Bitcoin Sovereign Reserve should advance. 

The bill suggests placing up to 5% of Brazil’s international reserves into BTC. However, PT deputies Zé Neto and Vander Loubet called for the measure to be withdrawn from the agenda, citing risks.

Neto explained that conversations with the Ministry of Finance and the Central Bank raised questions about the proposal. He said the plan required more legal and technical adjustment before moving forward. 

His request was quickly supported by Vander Loubet, who said the proposal could expose Brazil to price volatility.

Loubet pointed out that such an allocation could create fiscal risks without proper impact studies. He stressed the need for a gradual and safer approach before public assets are exposed to Bitcoin’s movements. Both deputies emphasized they were not rejecting the idea outright but wanted deeper analysis before approval.

According to reports, the deputies’ requests led the committee to remove the bill from discussion. The session ended without a new date set for reconsideration.

Rapporteur Defends Bitcoin Bill and Promises Adjustments

Rapporteur Luiz Gastão responded by saying the project had already been debated during a public hearing the week before. 

He argued the 5% allocation was small enough to test Bitcoin’s role without heavy risks. Gastão maintained that holding a share of reserves in Bitcoin could provide stability rather than instability.

He noted that Brazil needed to consider alternatives for managing reserves, and Bitcoin could be part of that strategy. At the same time, he agreed to review the concerns raised and adjust the bill. His focus, he said, would be on security and consensus, ensuring Treasury input is addressed.

Gastão also reminded the committee that procedural rules allowed the postponement. However, he promised to return the project with updates after consulting with critics. He emphasized that the adjustments would aim to build trust around the idea.

For now, the bill remains in limbo. No date has been set for the next round of discussions, leaving the fate of Brazil’s Bitcoin Sovereign Reserve undecided.

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