Brazilian lawmakers have reintroduced one of the most ambitious Bitcoin acquisition proposals in sovereign history. Bill PL 4501/2024, known as RESBit (Reserva Estrategica Soberana de Bitcoin), would authorize the Brazilian government to acquire up to one million Bitcoin over five years. At current prices, that is roughly $68 billion worth of BTC.
This is not a symbolic gesture. The bill includes specific funding mechanisms, tax reform, public reporting requirements, and a direct connection to Brazil's central bank digital currency. If passed, Brazil would become the single largest state holder of Bitcoin on the planet, dwarfing El Salvador's 7,500 BTC treasury and rivaling the United States' executive order reserve.
Bill PL 4501/2024: The Full Legislative Blueprint
Federal Deputy Luiz Gastao (PSD-CE) reintroduced the bill to Brazil's Economic Development Commission on February 9, 2026. The original version was first proposed by Congressman Eros Biondini (PL-MG) in November 2024 as part of a broader push to integrate digital assets into Brazil's financial sovereignty strategy.
The revised bill goes far beyond "buy Bitcoin." Here is what it actually proposes:
Acquisition framework:
- Gradual purchase of up to 1,000,000 BTC over five years
- Funding from up to 5% of Brazil's existing foreign reserves
- Authority to accept Bitcoin from tax payments by individuals and corporations
- Permission to temporarily hold BTC-backed spot ETF shares during emergencies
- Authorization for public companies to accumulate Bitcoin
Tax and regulatory reform:
- Federal taxes, fees, and fines payable in Bitcoin at market price
- Brazil's Internal Revenue Service (Receita Federal) gets 12 months post-enactment to build the technological infrastructure
- Digital asset custody rights codified into law, including self-custody protections
- Confidentiality protections for Bitcoin holders, breakable only by court order
- Ban on selling Bitcoin seized by judicial authorities
Oversight and accountability:
- Brazil's central bank must publish semi-annual reports to the National Congress
- Reports must detail custody arrangements, transaction records, and performance metrics
- Administrative and criminal sanctions for mismanagement
- Reimbursement obligations for non-compliance
The bill must clear three congressional committees: Finance and Taxation, Constitution and Justice, and Science, Technology, and Innovation. If enacted, the Executive Branch has 180 days to implement regulations.
The Drex Connection: Bitcoin as CBDC Collateral
Perhaps the most surprising provision is the proposal to use Bitcoin as collateral for Drex, Brazil's central bank digital currency. Drex is already in advanced pilot stages and is designed to tokenize the Brazilian real for programmable finance, wholesale settlement, and retail payments.
Linking Bitcoin to Drex would create something no other country has attempted: a sovereign digital currency partially backed by a decentralized asset. The implications are significant. It would give Bitcoin a formal role in Brazil's monetary infrastructure, not just as a reserve asset but as active collateral supporting the national payment system.
This contrasts sharply with the US approach, where the Strategic Bitcoin Reserve executive order explicitly limits holdings to forfeited Bitcoin and does not integrate BTC into the dollar system.
The Global Sovereign Bitcoin Race
Brazil's proposal does not exist in a vacuum. A clear pattern is emerging across multiple governments:
| Country | Proposal | BTC Target | Status |
|---|---|---|---|
| Brazil | RESBit (PL 4501/2024) | 1,000,000 BTC | In committee review |
| United States | Executive Order + BITCOIN Act | 1,000,000 BTC (Lummis bill) | EO signed March 2025, legislation pending |
| El Salvador | Active treasury | 7,500 BTC held | Operational since 2021 |
| Czech Republic | Central bank study | 5% of reserves (approx. $7.3B) | Under review, ECB opposition |
| Bhutan | State mining operation | Undisclosed | Operational via Druk Holding |
The US signed an executive order in March 2025 establishing a Strategic Bitcoin Reserve, but it is limited to forfeited coins already in government possession. Senator Cynthia Lummis's BITCOIN Act proposes active purchases of 1 million BTC over five years, matching Brazil's target, but the bill remains in legislative limbo. In January 2026, the White House acknowledged "obscure legal provisions" still need resolution before purchases can begin.
The Czech Republic's central bank governor Ales Michl proposed allocating 5% of reserves to Bitcoin in January 2025, but ECB President Christine Lagarde publicly opposed the move, calling Bitcoin "unsuitable" for central bank reserves due to volatility concerns.
El Salvador remains the only country actively buying. Its treasury holds roughly 7,500 BTC valued near $510 million, with on-chain data publicly verifiable.
SpendNode's Take: Bold on Paper, Uphill in Practice
We think the RESBit bill is the most comprehensive sovereign Bitcoin proposal any government has produced. It is not just "buy BTC" like the US executive order. It is a full-stack integration: tax reform, custody law, CBDC collateral, public auditing, corporate incentives, and self-custody protections bundled into one bill.
That said, we are skeptical it passes in anything close to its current form.
Acquiring 1 million BTC over five years means buying roughly 200,000 BTC per year, or about 548 BTC per day. For context, daily Bitcoin trading volume across all exchanges averages 300,000-500,000 BTC. A sovereign buyer accumulating 548 BTC daily would represent meaningful, sustained buy pressure. Markets would front-run the announcement alone.
The funding mechanism, 5% of foreign reserves plus tax receipts, is creative but raises questions. Brazil's total foreign reserves sit around $340 billion. Five percent is $17 billion, well short of the $68 billion needed at current prices. The bill implicitly assumes Bitcoin's price rises during the accumulation period (making each subsequent purchase more expensive) or that tax-denominated BTC inflows cover the gap. Neither assumption is guaranteed.
The Drex collateral provision is fascinating but untested. No central bank has used a volatile, decentralized asset as collateral for a sovereign digital currency. If Bitcoin drops 40% (as it has multiple times), the collateral backing Drex weakens, potentially creating systemic risk in the very payment system the CBDC is supposed to stabilize.
In our view, the most likely outcome is a watered-down version: a smaller BTC allocation (perhaps matching the Czech Republic's 5% of reserves approach), a longer timeline, and the Drex collateral provision stripped out. But even a scaled-back RESBit would be transformative. Brazil is Latin America's largest economy with a $2 trillion GDP. Any formal sovereign Bitcoin allocation sets a precedent for the entire region.
What This Means for Crypto Users in Brazil and Beyond
For Brazilian crypto users, the bill's tax and custody provisions may matter more than the headline reserve number. The proposal to accept Bitcoin for tax payments would create natural demand for BTC and legitimize it as a medium of exchange, not just a speculative asset. Codified self-custody rights would protect users from future regulatory overreach. And the ban on selling seized Bitcoin removes a persistent source of government-driven sell pressure.
For crypto card users in Brazil, a successful RESBit would likely accelerate local adoption of Bitcoin and stablecoin spending infrastructure. Vendors like Binance and Bybit already serve Brazilian users, and increased government legitimacy tends to push traditional banks toward crypto-friendly policies rather than away from them.
For users outside Brazil, the signal matters more than the specifics. Every sovereign Bitcoin reserve proposal, whether it passes or not, normalizes the idea that governments should hold BTC alongside gold and dollars. That normalization is what drives institutional adoption, ETF inflows, and ultimately the infrastructure buildout (cards, wallets, payment rails) that makes crypto spending practical.
The sovereign Bitcoin reserve race is no longer theoretical. The US has an executive order. El Salvador has a live treasury. The Czech Republic is studying allocations. And now Brazil has introduced the most detailed legislative proposal yet. Whether RESBit passes in 2026 or becomes the template for a future bill, the direction is clear.
FAQ
How much Bitcoin does Brazil currently hold? Brazil does not currently hold Bitcoin in its sovereign reserves. Bill PL 4501/2024 (RESBit) would authorize the first-ever acquisition of up to 1 million BTC over five years.
How would Brazil fund the Bitcoin purchases? The bill proposes using up to 5% of Brazil's foreign reserves (approximately $17 billion), accepting Bitcoin as payment for federal taxes, and allowing public companies to accumulate BTC. The total estimated cost at current prices is $68 billion.
What is Drex and how does Bitcoin connect to it? Drex is Brazil's central bank digital currency, currently in pilot stages. The RESBit bill proposes using Bitcoin as collateral backing Drex, which would be the first time any country has used a decentralized asset to support a sovereign digital currency.
Could Brazil actually buy 1 million Bitcoin? In theory, yes, but it would represent sustained daily purchases of roughly 548 BTC over five years. This would be visible in markets and likely front-run by traders. Most analysts expect any passed version to have a smaller target.
How does this compare to the US Bitcoin reserve? The US executive order (March 2025) limits holdings to forfeited Bitcoin already in government possession. Senator Lummis's BITCOIN Act proposes active purchases of 1 million BTC but remains in Congress. Brazil's bill is more comprehensive, including tax reform, custody law, and CBDC integration.
Overview
Brazil has reintroduced Bill PL 4501/2024 (RESBit), proposing the acquisition of up to 1 million Bitcoin over five years as a Strategic Sovereign Bitcoin Reserve. The bill, championed by Deputy Luiz Gastao and originally proposed by Congressman Eros Biondini, includes funding from 5% of foreign reserves, Bitcoin tax payments, corporate accumulation incentives, public auditing requirements, and a provision to use BTC as collateral for Brazil's CBDC Drex. The proposal must clear three congressional committees. While we think the full 1 million BTC target is unlikely to survive the legislative process, even a scaled-back version would make Brazil a major sovereign Bitcoin holder and set a precedent for Latin America. The bill adds to a growing global pattern alongside the US executive order, El Salvador's active treasury, and the Czech Republic's reserve study.
Recommended Reading
- MiCA 2.0 Regulatory Landscape for Crypto Cards in 2026
- The Clarity Act: White House Meeting on Stablecoin Rewards
- How Card Spend Converts On-Chain and Where
Sources
- Cryptopolitan: Brazil Reintroduces Proposal for 1 Million BTC Reserve
- Bitcoin Magazine: Brazil Eyes 1 Million Bitcoin for National BTC Reserve
- Blockworks: Brazilian Congressman Introduces Bill for National Bitcoin Reserve
- Bitcoinist: Brazil Revives Strategic Bitcoin Reserve Plan
- Clark Hill: White House Establishes Strategic Bitcoin Reserve
