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Brazil’s Congress has revived a proposal to build a sovereign Bitcoin reserve of up to 1 million BTC, roughly 5% of the cryptocurrency’s total fixed supply through phased government purchases estimated to cost approximately $68 billion over five years, under a bill that would formally establish what lawmakers are calling the Strategic Sovereign Bitcoin Reserve, or RESbit.
If approved, the measure would position Brazil among the largest state holders of Bitcoin and signal formal backing of the asset by Latin America’s biggest economy.
The proposed Brazil bitcoin reserve would unfold through phased acquisitions, subject to legislative approval and oversight. Supporters argue the move would diversify national reserves and align Brazil with evolving global financial trends, while critics caution that regulatory and central bank resistance could slow or derail the plan.
The revived bill would authorize the federal government to accumulate at least 1,000,000 BTC over a five-year period as part of the Brazil bitcoin reserve strategy. Lawmakers backing the proposal frame it as a long-term financial hedge and a strategic reserve similar in concept to gold holdings.
Under the plan, the government would gradually purchase Bitcoin rather than execute a single large acquisition. Proponents argue this measured approach could mitigate market disruption while steadily building the Brazil bitcoin reserve.
The legislation must pass through congressional committees before advancing to a full vote. It may also face scrutiny from Brazil’s central bank, which does not currently classify Bitcoin as part of official foreign reserves. The timing of any implementation would therefore depend on political negotiations and regulatory review.
Bitcoin’s supply is capped at 21 million coins, and a significant portion is either permanently lost or held for long-term storage. A Brazil bitcoin reserve accumulating up to 1 million BTC would represent a substantial share of the circulating supply.
If purchases occur gradually, analysts expect the immediate price impact to be muted. However, sustained government demand could tighten available supply over time. Even anticipation of a large-scale Brazil bitcoin reserve may influence market sentiment before any formal acquisition begins.
Markets frequently respond to policy signals ahead of execution. Should the bill gain momentum in Congress, traders may price in future demand linked to the Brazil bitcoin reserve, potentially increasing volatility. Conversely, legislative delays or rejection could temper enthusiasm and stabilize expectations.
The broader implication is structural: reduced liquid supply combined with steady sovereign accumulation could reinforce Bitcoin’s scarcity narrative.
Despite renewed debate, the Brazil bitcoin reserve faces procedural and institutional challenges. The bill must clear multiple legislative stages, including committee review, where amendments or opposition could reshape its scope.
Brazil’s central bank has not formally integrated Bitcoin into its reserve framework, raising questions about coordination between fiscal and monetary authorities.
Resistance from monetary policymakers could slow the progress of the Brazil bitcoin reserve, particularly if concerns emerge around volatility, liquidity management, or macroeconomic risk.
The legislative process may take months, and possibly longer, depending on political alignment and public debate. As a result, the trajectory of the Brazil bitcoin reserve will likely hinge as much on domestic politics as on market conditions.
A successful Brazil bitcoin reserve would extend beyond national borders. By committing an estimated $68 billion to Bitcoin purchases over five years, Brazil could set a precedent for other emerging economies evaluating digital asset strategies.
Such a move might encourage governments to consider Bitcoin as a complement to traditional reserve assets like gold. Increased sovereign participation through mechanisms like the Brazil bitcoin reserve could also draw greater institutional interest, strengthening perceptions of legitimacy in the crypto market.
