Brazil Bans Pension Fund Investments in Bitcoin
Date: 2025-04-02 Author: Henry Casey Categories: IN WORLD
The decision is based on the high level of uncertainty in the crypto market. Volatility, significant risks of capital loss, and the possibility of fraud are the reasons why the authorities have refused to allow pension funds to invest in cryptocurrencies.
Brazilian Finance Minister Fernando Haddad explained that this step is aimed at protecting pension savings:
"We have introduced this ban to protect citizens' savings. The crypto market is too volatile, and we cannot allow pension assets to be at risk due to its fluctuations."
Before this ban, pension funds could invest in cryptocurrencies, subject to certain regulations. Some funds have already begun investing in Bitcoin, counting on its long-term growth. However, such actions are now strictly prohibited.
The National Superintendent of Private Pension Funds (Previc) stressed that the decision was made after consultation with experts and there are no plans to review this approach in the near future.
The market reaction was mixed. Cryptocurrency enthusiasts believe that the authorities are trying to curb the development of digital assets due to the threat to the traditional financial system. In their opinion, the decision is dictated by the interests of old financial institutions. On the other hand, supporters of the ban consider it justified, believing that pension funds should invest only in stable and reliable assets, and not risk the money of future pensioners in the face of high volatility in the cryptocurrency market.
