Brazil Plans to Buy 1 Million Bitcoin for National Reserve

Brazil has taken a bold step toward crypto adoption with a new bill proposing the gradual purchase of 1 million Bitcoin over the next five years as part of its national reserves.

Key Takeaways

• Brazil introduced a bill to build a sovereign Bitcoin reserve totaling 1 million BTC over five years.
• The plan could cost nearly $68 billion and would surpass US and China in BTC holdings.
• The bill includes provisions for tax payments in Bitcoin and incentives for BTC miners.
• Despite strong ambitions, the proposal faces resistance from Brazil’s central bank.

What Happened?

A revised bill presented in Brazil’s Congress proposes the creation of a Strategic Sovereign Bitcoin Reserve (RESbit). It seeks to gradually accumulate 1 million BTC, marking one of the most aggressive national-level Bitcoin strategies to date. The bill expands on an earlier proposal that capped Bitcoin acquisitions at 5 percent of Brazil’s foreign reserves.

Brazil’s Big Bitcoin Bet

Brazil’s updated legislation aims to diversify its national treasury and secure assets immune to inflation or third-party seizure. The country would acquire up to 1 million BTC across five years, amounting to around 200,000 BTC annually. This would represent nearly 4.8 percent of Bitcoin’s total 21 million supply, potentially tightening global liquidity.

The reserve would be managed by Brazil’s Treasury, not the central bank, and would redefine how digital assets are treated under the law. Additional measures include:

• Accepting Bitcoin as a payment method for federal taxes.
• Banning the sale of BTC seized by judicial authorities.
• Offering tax and operational incentives for companies mining or holding Bitcoin.
• Exempting BTC transactions from capital gains tax.

Deputy Luis Gastão, the bill’s sponsor, described the approach as comprehensive, aiming not only to form a reserve but also to guarantee citizens’ rights around digital asset use and custody.

Market and Regulatory Impacts

While the bill has stirred excitement in the crypto space, Brazil’s central bank remains opposed, citing that Bitcoin is not currently recognized as a reserve asset under existing financial rules. This resistance could delay or challenge the bill’s journey through legislative committees, including Finance and Taxation and Constitution, Justice, and Citizenship.

Despite hurdles, the proposal has already captured investor attention, influencing market psychology. Experts note that even without immediate execution, the existence of a government mandate to accumulate such a large volume of Bitcoin sends a powerful demand signal.

What It Means for Bitcoin’s Supply?

If enacted, Brazil’s plan would remove a significant chunk of Bitcoin from circulation, potentially increasing its scarcity. Analysts suggest this steady buying strategy is designed to avoid short-term price spikes but could elevate Bitcoin’s long-term valuation.

Key points:

• 200,000 BTC purchased per year would lower available supply.
• Market reaction is likely to occur in phases, from sentiment-driven surges to long-term pricing support.
• Other countries might follow Brazil’s lead, further reinforcing Bitcoin’s “digital gold” reputation.

Legislative Timeline and Related Bills

The bill was reintroduced on February 13, 2026, by the House Committee on Economic Development. It still needs approval from multiple other committees before becoming law.

Separately, Brazil is also considering a bill to ban algorithmic stablecoins like Ethena’s USDe and Frax. If passed, this could divert more capital toward Bitcoin, making the reserve strategy even more impactful.

CoinLaw’s Takeaway

In my experience covering crypto legislation, this is one of the most ambitious Bitcoin policies ever introduced by a government. The sheer scale of acquiring 1 million BTC over five years is jaw-dropping and, if passed, would place Brazil as a global crypto superpower. I found it fascinating that the bill not only targets accumulation but also aims to reshape tax policy, legal custody, and crypto incentives. Sure, there’s resistance from the central bank, but the proposal has already moved markets. Whether or not Brazil gets all the way to 1 million BTC, this is a major signal that governments are no longer ignoring crypto. They’re making room for it at the highest financial levels.

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