Brazil’s Congress has reintroduced a bill that would allow the federal government to create a Strategic Bitcoin Reserve, with plans to accumulate up to 1 million bitcoins over five years if the legislation is approved. The proposal represents one of the most ambitious efforts by a major economy to formally adopt Bitcoin as a strategic national asset.
The bill was submitted through an amendment in the Chamber of Deputies’ Committee on Economic Development. Lawmakers behind the proposal say the government would acquire Bitcoin gradually over a five-year period to reduce market disruption and manage price volatility while building a sovereign reserve.If passed, Brazil’s Treasury would be authorized to purchase up to 1 million BTC , a significant allocation considering Bitcoin’s fixed supply of 21 million coins. Such a reserve would position Brazil among the largest institutional holders of Bitcoin globally and could influence how other nations view digital assets within sovereign reserve strategies.
The proposal also includes broader digital-asset measures. These reportedly include potential tax exemptions on capital gains from Bitcoin transactions and the possibility of allowing certain federal payments or fines to be settled in Bitcoin.
Supporters argue that a Bitcoin reserve could serve as a hedge against inflation and currency depreciation, describing it as a modern complement to traditional reserve assets such as gold and foreign currency holdings. They believe the move could strengthen Brazil’s long-term financial resilience.
However, critics highlight several challenges. Brazil’s central bank does not currently classify Bitcoin as an official reserve asset, meaning regulatory adjustments would be required. Skeptics also warn that Bitcoin’s price volatility could expose national reserves to significant risk.
The bill must now pass through multiple congressional review stages, including committees focused on finance, taxation, and constitutional matters, before a full legislative vote.If approved, Brazil would join a small but growing list of nations exploring Bitcoin as part of sovereign financial strategy, a move that could reshape global reserve policy discussions.
Read also: Anthropic Raises $30 B in Series G, Hits $380B Valuation
