Brazil proposes 1 million BTC reserve in new crypto bill

Brazil’s Congress is reviewing a bill to create a Strategic Bitcoin Reserve, enabling the purchase of up to 1 million BTC and introducing incentives for companies and digital asset rights.

Brazil has reintroduced a bill in Congress to establish a Strategic Sovereign Bitcoin Reserve (RESbit), allowing the country to acquire up to 1 million BTC over five years. This marks a significant increase from previous limits and aims to diversify Brazil’s national treasury with an asset seen as resistant to inflation and immune to third-party confiscation. The central bank would oversee the reserve. The bill proposes incentives for corporate Bitcoin holdings and mining, acceptance of Bitcoin for federal tax payments, and a ban on the sale of seized Bitcoin. It also guarantees rights to self-custody and transfer of digital assets. If passed, Brazil could become one of the world’s largest Bitcoin holders, potentially impacting the cryptocurrency’s supply and price. The bill is currently under committee review and may face resistance from the central bank, with the legislative process expected to take several months.