PT deputies hesitate to vote on the Bitcoin Sovereign Reserve, arguing that a vote could cause economic risks, and the rapporteur intends to make changes to the bill to allow it to be stable and monitored.
The Bitcoin Sovereign Reserve vote was rejected by the Economic Development Committee, which exercised its veto power. Two deputies of the Workers’ Party (PT) went ahead and submitted the request. The effort to postpone was led by Zé Neto (PT-BA) and Vander Loubet (PT-MS).
The project is contemplating the possibility of circulating up to five percent of Brazil’s international reserves in the form of bitcoin. The PT deputies showed deep concern regarding the dangers of this strategy to the national economy.
PT Blocks Vote Citing Economic Risks from Bitcoin Reserves
PT deputies lamented that the bill was a threat to the Brazilian economy. Their institutional position is traced to a recent public hearing by the Ministry of Finance and the Central Bank. The two agencies expressed concerns regarding Bitcoin volatility and financial effects.
Zé Neto is also involved in constant negotiations with the Ministry and the Central Bank. He stressed that before going ahead, there was a need to have clarity in the law.
We need to challenge it by opening dialogue to know what the Treasury fears all about, said Neto in livecoins.com.br.
Vander Loubet emphasized the dangers of the plan. Putting 5 percent of reserves in Bitcoin, he stated, would cause high volatility and fiscal uncertainty. Loubet advocated additional technical evaluation and test periods that would not endanger human resources.
Rapporteur Stands Firm, Promises Bill Adjustments for Stability
In spite of PT resistance, the bill has its advantages, argued its rapporteur, Luiz Gastao (PSD-CE). He was adamant that a five percent allotment is a negligible and readily measurable amount. Gastao has the opinion that the Bitcoin reserve will introduce greater financial stability to Brazil. The bill enables us to experiment and to observe results with caution, explained Gastao.
He vowed to make some changes that would deal with the issues raised by the Treasury. In order to accomplish this, before a later vote, the text will be revised.
Gastao rejected the fear of destabilization. He expressed that with Bitcoin reserves, Brazil has economic options that make it more financially stable. It is the gain that would be secured, not the risk created, he added.
No new vote date has been set. The committee is awaiting sophisticated deliberations with PT lawmakers to reach a compromise.
The purpose of the measure is to diversify Brazil’s reserves without putting the country’s Treasury in a position where it would be exposed to major dangers.
