Brazil Reintroduces Strategic 1 Million Bitcoin Reserve Bill

• The bill would allow the country to buy up to 1 million Bitcoin over the next five years.
• The draft also permits the use of Bitcoin for settling federal taxes and fines.
• The bill is currently undergoing committee review, making its way toward potential passage.

Brazil’s Chamber of Deputies has reintroduced a major bill that would allow the government to establish a Strategic Sovereign Bitcoin Reserve. If passed, it would allow the country to buy up to 1 million Bitcoin over the next five years as part of its official holdings.

The 1 million BTC is a much bigger target than earlier plans, and the crypto purchases would be spaced out to avoid shocking the market.

The draft also permits the use of Bitcoin for settling federal taxes and fines, and profits from selling crypto would be tax-free. Additionally, any Bitcoin seized by courts and held by the government couldn’t be sold, helping to keep the reserve intact.

The bill is currently undergoing committee review (including by the Committee on Economic Development, Finance and Taxation, and Constitution and Justice) as it makes its way toward potential passage.

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Possible Impact on Brazil’s Financial Strategy

If passed, Brazil could become one of the biggest sovereign holders of Bitcoin in the world, with more than many companies and other countries. By some estimates, 1 million Bitcoin would be about 5% of all the Bitcoin that will ever exist, which would create a huge, long-term buying force in the market.

Supporters say a Bitcoin reserve would help Brazil diversify what it keeps in the national treasury and protect against inflation and a weaker currency. It would also help against over-reliance on the US dollar, much like how countries hold gold as a safe asset.

This is an interesting change of events (especially if the bill passes), considering Brazil’s central bank has always been hesitant to treat Bitcoin as a true reserve asset, since current accounting rules don’t recognize it that way. 

So for the government to actually hold Bitcoin, lawmakers would first need to change the laws and regulations, clearing the way for the central bank to officially add it to the country’s reserves.

Brazil’s Bitcoin reserve idea isn’t new, since a similar bill was introduced in late 2024 and moved forward through hearings and committee talks in 2025. Lawmakers have been exploring the possibility of using some of the country’s foreign currency reserves to buy Bitcoin, as part of a bigger push to modernize the treasury and get more involved in digital finance.

Related: Brazil’s Crypto Market Surges 43% in 2025 as Adoption Skyrockets