Brazilian legislators have introduced bill 4501/2024, proposing to invest 5% of the country's international reserves (approximately $16.4 billion) in Bitcoin, managed by the central bank and the Ministry of Finance. However, the central bank has expressed concerns, fearing that volatility could undermine the credibility of monetary policy, and the bill is still under review.

Oh, with this proposal, it feels like Bitcoin's institutionalization has taken a significant step forward, echoing Trump's action of purchasing over $100 million in bonds since taking office, both are efforts to hedge against economic uncertainty. However, the Brazilian central bank's concerns are real; high volatility can indeed disrupt the macroeconomic landscape.

I see this matter being difficult to materialize in the short term, but if passed, it could stimulate more emerging markets to follow suit, increasing BTC demand. Combined with a 24% decline in crypto capital inflows over the past three weeks, this could be a turning point. It is advisable to pay attention to the hearing results and prepare to increase holdings in emerging reserve currencies.