Brazil introduces 1m Bitcoin Strategic Reserve Bill - first G20 country to codify. The recent headlines about Brazil introducing (or more precisely, reintroducing in an expanded form) a bill to create a strategic Bitcoin reserve targeting up to 1 million BTC represent a significant development in sovereign cryptocurrency adoption. This proposal, which surfaced prominently in mid-February 2026, builds on earlier legislative efforts and has generated widespread discussion in crypto communities. At the same time, related proposals address stablecoin taxation, reflecting Brazil’s dual approach of embracing certain digital assets while tightening fiscal oversight on others. The bill in question is an updated and reintroduced version of Bill 4501/2024 (also referenced with related proposal IDs like 2601408 in congressional tracking). Originally introduced in late 2024 by figures such as Federal Deputy Eros Biondini, it advanced through initial committee stages and a public hearing in 2025. The reintroduced version, presented around February 13, 2026, by Federal Deputy Luiz Gastão (PSD/CE) as rapporteur, significantly expands the scope. Key elements include: • Creation of RESBit (Reserva Estratégica Soberana de Bitcoin, or Strategic Sovereign Bitcoin Reserve). • Target accumulation: At least 1,000,000 BTC (1 million Bitcoin) over a five-year period, through gradual, planned purchases. • Funding mechanism: Potentially drawing from Brazil’s foreign exchange reserves (estimated around $300–370 billion in recent years), with earlier versions capping at up to 5% allocation the expanded target implies a much larger commitment if fully realized. • Estimated cost: At Bitcoin prices around $66,000–$70,000 (prevailing in early 2026 reports), this could total roughly $66–70 billion for the full amount, though phased implementation would spread this out. • Additional provisions: • Prohibition on selling seized Bitcoins (e.g., from judicial or law enforcement actions), keeping them in public control. • Allowance for tax payments in Bitcoin. • Encouragement of state-owned or supported Bitcoin mining. • Promotion of federal custody standards and blockchain adoption to diversify reserves, hedge against inflation/currency risks, and reduce reliance on traditional assets like the US dollar. This positions Brazil as potentially the first G20 nation to legislatively codify Bitcoin as a sovereign reserve asset, following inspirations from US discussions on similar strategic reserves.
