Brazil Moves Boldly to Secure 1 Million BTC for Strategic Sovereign Reserve

As of February 13, 2026, a bill has been introduced in Brazil’s Congress to create a Strategic Sovereign Bitcoin Reserve, to accumulate up to 1 million BTC within the next five years. This could see Brazil become one of the biggest holders of Bitcoin among nations.

The bill improves an earlier draft by expanding the scope of the national reserve. The bill allows for a gradual accumulation of Bitcoin as a strategic asset to diversify the National Treasury and protect against the risks of inflation and confiscation. The bill encourages companies to mine and hold BTC, and even allows Bitcoin as a means of payment for federal taxes.

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Deputy Gastao Supports Comprehensive Bitcoin Strategy

Deputy Luis Gastao emphasized the all-encompassing approach of the proposal, which not only promised the creation of a sovereign reserve but also the firm protection of the fundamental rights associated with digital asset custody.

The cost implications are significant. The proposed legislation requires a spend of around $68 billion to achieve the 1M BTC target. This is expected to place Brazil above the United States and China in terms of the country’s Bitcoin holdings, according to experts.

Brazil Faces Central Bank Bitcoin Regulation

However, the bill faces regulatory headwinds. Currently, Brazil’s Central Bank does not consider Bitcoin a reserve currency. Thus, a complete implementation of the bill would depend on changes in legislation.

Additionally, it was pointed out that the macroeconomic implications and volatility of Bitcoin need to be considered before proceeding.

The bill also proposes making it illegal to sell BTC that has been seized by judicial authorities, thus strengthening the legal framework that regulates digital assets. If Congress approves the bill, it will be a historic step towards integrating cryptocurrencies into the country’s economic framework.

Why This Matters

Brazil could also be the world leader in the amount of Bitcoin held nationally, which would be a major turning point for the global crypto market.

The proposed legislation could also influence the adoption of BTC, as well as the sentiment of investors in Latin America.

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