Brazil has advanced plans to establish a national Bitcoin reserve through updated legislation.
Lawmakers seek to formalize cryptocurrency as part of sovereign asset management.
The proposal outlines a structured five-year acquisition strategy funded through foreign exchange reserves.
If approved, Brazil would become the first G20 nation to codify Bitcoin as a sovereign reserve asset.
Brazil’s legislative framework and 1M Bitcoin reserve target
Federal Deputy Luiz GastĂŁo presented the expanded version of Bill 4501/2024 on February 13, 2026.
The measure builds on earlier efforts introduced by Federal Deputy Eros Biondini in late 2024, which progressed through committee stages and public hearings in 2025. \
The revised proposal creates RESBit, Brazil’s Strategic Sovereign Bitcoin Reserve, as the formal mechanism to manage holdings.
Lawmakers now target the acquisition of one million Bitcoin over five years, representing about 5% of the total supply.
Brazil’s foreign exchange reserves currently range between $300 billion and $370 billion.
Earlier drafts capped allocations at 5% of reserves, yet the expanded target signals a broader fiscal commitment.
At Bitcoin prices between $66,000 and $70,000, the full reserve would cost between $66 billion and $70 billion.
Legislators structured the plan across multiple budget cycles to limit market disruption.
MartyParty, a crypto industry commentator, wrote on X that Brazil had introduced a 1 million Bitcoin strategic reserve bill, describing it as the first such move within the G20.
Several nations have discussed similar strategies, yet Brazil appears positioned to implement the policy first among major economies.
Implementation provisions and strategic goals
The bill establishes RESBit to oversee acquisition, custody, and management of Bitcoin holdings.
Authorities would retain seized Bitcoin from judicial and law enforcement actions rather than sell them.
Lawmakers also allow taxpayers to settle obligations using Bitcoin, which would provide another channel for reserve accumulation.
The proposal encourages state-owned or state-supported Bitcoin mining operations to enable domestic production. It also promotes federal custody standards and broader blockchain adoption across government institutions.
Lawmakers stated that the Bitcoin reserve would diversify holdings beyond US dollars and gold.
They identified currency risk mitigation and inflation hedging as central objectives. The proposal now awaits further congressional action before implementation.