Brazil Proposes Strategic Sovereign Bitcoin Reserve to Buy 1 Million BTC
Brazilian lawmakers have advanced a bill (RESBit) to create a Strategic Sovereign Bitcoin Reserve that would phase in purchases of up to 1,000,000 BTC over five years. Submitted to the Chamber of Deputies by Federal Deputy Luiz Gastão, the proposal seeks to formally integrate Bitcoin into national reserve strategy and diversify state assets. Key measures include banning the sale of court-seized crypto assets (keeping them under public management), permitting certain tax payments in bitcoin, and offering incentives for mining, custody businesses and public institutions that hold or mine BTC. The bill mandates strict security (cold wallets, multisignature custody) and transparency — public reporting of holdings via digital platforms. The proposal cites international precedents and, if enacted, could make Brazil one of the largest sovereign BTC holders, reducing available supply and creating a significant long-term state buy-side. Challenges noted include funding sources (uses of FX reserves or new budgets), conflicts with existing central bank and reserve regulations that may not accept BTC as an official reserve asset, and political and regulatory hurdles. Analysts say full acquisition within five years is uncertain; nevertheless, partial implementation would be symbolically and marketwise significant and could spur other countries to consider sovereign bitcoin reserves. Disclaimer: not investment advice.
Bullish
The proposal to build a sovereign Bitcoin reserve of up to 1,000,000 BTC is likely bullish for BTC price expectations. A credible government-backed, multi-year buy program would reduce available supply and create a known long-term buyer, supporting higher prices over time. Short-term impact may be limited while the bill remains in committee — political, regulatory and funding hurdles make near-term execution uncertain. Traders should expect elevated volatility on legislative milestones (committee votes, full-house approvals, Senate review, presidential signature). If the bill advances or partial purchases are authorized, anticipate sustained upward pressure as markets price in reduced supply and institutional demand. Conversely, setbacks or rejection would remove that potential bid, possibly triggering corrective moves. Overall, the news increases medium- to long-term bullish sentiment but leaves short-term outcomes dependent on political progress.