TLDR:
- Brazil targets one million Bitcoin accumulation over five years through RESBit strategic reserve framework.
- Bill 4501/2024 permits Brazilian taxpayers to settle tax obligations directly using Bitcoin payments.
- Legislation prohibits sale of seized Bitcoins, retaining confiscated assets under public control.
- Brazil becomes first G20 nation to codify Bitcoin as sovereign reserve asset through formal legislation.
Brazil has reintroduced legislation to establish a strategic Bitcoin reserve targeting one million BTC over five years. Federal Deputy Luiz Gastão presented the expanded version of Bill 4501/2024 on February 13, 2026.
The proposal positions Brazil as the first G20 nation to codify cryptocurrency as a sovereign reserve asset. The bill creates RESBit, Brazil’s Strategic Sovereign Bitcoin Reserve, with funding potentially drawn from national foreign exchange holdings.
Legislative Framework and Reserve Target
The updated bill represents an expansion of earlier legislative efforts from late 2024. Federal Deputy Eros Biondini originally introduced the measure, which advanced through committee stages and public hearings in 2025. The reintroduced version carries substantially broader ambitions than its predecessor.
MartyParty, a crypto industry commentator, highlighted the development on X, stating “Brazil introduces 1m Bitcoin Strategic Reserve Bill – first G20 country to codify.”
The observation reflects growing institutional interest in cryptocurrency as a hedge against traditional financial risks.
Several nations have discussed similar measures, yet Brazil appears positioned to implement such policy first among major economies.
The target of one million Bitcoin represents approximately 5% of the total supply that will ever exist. Brazil’s foreign exchange reserves currently stand between $300 billion and $370 billion.
Earlier versions of the bill proposed capping allocations at 5% of reserves, though the expanded target suggests a larger commitment.
At prevailing Bitcoin prices between $66,000 and $70,000, the full reserve would cost approximately $66 billion to $70 billion.
However, the five-year implementation timeline spreads acquisition costs across multiple budget cycles. This phased approach aims to minimize market impact while building the reserve gradually through planned purchases.
Implementation Provisions and Strategic Goals
The bill establishes RESBit as the formal mechanism for managing Brazil’s Bitcoin holdings. The reserve structure includes several operational provisions beyond simple acquisition.
Seized Bitcoins from judicial and law enforcement actions would be retained rather than sold, keeping them under public control.
The legislation permits Brazilian taxpayers to settle obligations using Bitcoin. This provision could accelerate cryptocurrency adoption while providing another avenue for reserve accumulation.
The government would receive Bitcoin directly through tax payments rather than exclusively through open market purchases.
State-owned or state-supported Bitcoin mining operations receive encouragement under the proposal. Domestic mining would allow Brazil to acquire Bitcoin through production rather than purchase alone.
The bill also promotes federal custody standards and blockchain technology adoption across government operations.
The reserve aims to diversify Brazil’s monetary holdings beyond traditional assets like US dollars and gold. Currency risk reduction and inflation hedging represent core objectives.
By holding Bitcoin, Brazil seeks to protect against potential depreciation of conventional reserve assets while participating in the emerging digital asset economy.
The proposal awaits further legislative action before implementation. Congressional approval would mark a historic shift in sovereign asset management and cryptocurrency legitimacy within major economies.
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Source: https://blockonomi.com/brazil-proposes-historic-1-million-bitcoin-strategic-reserve-bill/
