Market News

Brazil's Ambitious Bitcoin Reserve Plan: Aiming for 1 Million BTC

A significant legislative move is underway in Brazil as Congress reintroduces a bill aimed at establishing a national strategic bitcoin reserve.

This new bill proposes the acquisition of up to 1 million BTC over the next five years, positioning Brazil as a leading pro-bitcoin nation globally.

The measure seeks to allocate nearly $68 billion for this endeavor, which would significantly expand the nation’s digital asset portfolio.

Previously, the bill allowed for up to 5% of Brazil’s foreign reserves to be invested in bitcoin, aiming to diversify the National Treasury's assets against inflation.

New provisions include banning the sale of bitcoin seized by judicial authorities and allowing bitcoin as a payment method for federal taxes.

Additionally, incentives for companies engaged in bitcoin mining and custody are part of the proposed changes, emphasizing a comprehensive approach.

Deputy Luis Gastao highlights the importance of these modifications in safeguarding fundamental rights related to digital asset usage.

If passed, this legislation could place Brazil ahead of established leaders in bitcoin reserves, like the U.S. and China.

However, the bill faces challenges due to existing central bank regulations that currently do not recognize bitcoin as a legitimate reserve asset.

The outcome of this initiative could shape the future of bitcoin adoption and regulation in Brazil and beyond.