Brazil Introduces Bill to Acquire 1 Million Bitcoin for National Reserve

TLDR

• Brazil has reintroduced a bill to establish a strategic Bitcoin reserve with plans to acquire 1 million BTC over five years.
• The revised bill aims to diversify Brazil’s national reserves by adding Bitcoin as a strategic asset immune to inflation.
• The proposal includes allowing Bitcoin as a payment method for federal taxes and offering incentives for Bitcoin miners.
• Brazil’s central bank, however, opposes the bill as Bitcoin is not currently recognized as part of the national reserves.
• If approved, the bill could make Brazil one of the largest holders of Bitcoin globally, surpassing the US and China.

Brazil has introduced a revised bill to establish a national Bitcoin reserve, proposing the acquisition of 1 million BTC over five years. The bill aims to position Brazil as a leader in cryptocurrency adoption and bolster its national financial strategy. With this move, the country seeks to diversify its reserves and embrace Bitcoin as a key asset.

Proposed Bitcoin Reserve Plan

The revised bill, introduced in Brazil’s Congress, outlines plans for a Strategic Sovereign Bitcoin Reserve (RESbit). It suggests a gradual acquisition of at least 1 million Bitcoin over five years. The reserve would be part of Brazil’s official assets, helping to diversify the National Treasury’s portfolio.

Previously, the bill allowed the use of up to 5% of Brazil’s foreign reserves to purchase Bitcoin. This new version expands the plan, allowing for a larger-scale acquisition. The objective is to accumulate Bitcoin as a strategic asset immune to inflation and outside confiscation risks.

This Bitcoin Reserve bill proposes several changes, such as accepting Bitcoin for federal tax payments. The bill also suggests incentivizing companies that mine and hold Bitcoin, aiming to boost national participation in the cryptocurrency market. A key element is the ban on selling Bitcoin seized by judicial authorities.

Deputy Luis Gastao, who introduced the revised proposal, emphasized the broad scope of the bill. He explained that it not only seeks to create a sovereign reserve but also guarantees fundamental rights related to Bitcoin usage and custody. If approved, this law could secure Brazil’s position as one of the largest Bitcoin holders globally.

Central Bank Opposes Brazil Bitcoin Reserve Bill

The bill faces opposition from Brazil’s central bank, which does not currently recognize Bitcoin as part of the national reserves. This conflict could delay the bill’s progress as it requires approval from various commissions within Congress. Additionally, the bill’s passage will depend on how it aligns with existing financial regulations.

The proposal has already drawn attention from investors and financial experts, many of whom are watching the political process closely. The eventual outcome will have long-term implications for how Brazil and other nations treat Bitcoin as part of their financial reserves.

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