A Massive Bitcoin Reserve Could Be Coming to One of the World’s Largest Economies – Proposal to Buy 1 Million BTC Within 5 Years

A notable cryptocurrency initiative has emerged within the Brazilian House of Representatives. An alternative text to bill PL4501/2024, presented by the House’s Economic Development Commission, proposes the establishment of a “National Bitcoin Strategic Reserve” (RESBit).

According to the proposal, the Brazilian government aims to gradually accumulate at least 1 million BTC over five years. This step is said to be designed to increase the country’s financial resilience, ensure reserve diversification, and enhance its global competitiveness in the digital asset ecosystem.

RESBit is planned to be positioned as a strategic asset that is an alternative or complement to traditional foreign exchange and gold reserves.

The alternative proposal aims not only to create a reserve but also to broadly support the crypto ecosystem. Accordingly:

• The proposal envisages allowing tax payments using Bitcoin.
• Plans are underway to provide income tax exemption for capital gains from digital assets.
• The proposal suggests legally guaranteeing fundamental digital property rights for users, such as the right to store their assets and the right to free transfer.

It is stated that if Brazil takes such a strategic reserve step, it could mark the beginning of a new era in state-level Bitcoin accumulation in Latin America. While the bill is currently being considered at the committee level, it needs to pass through the approval processes of the House of Representatives and the Senate to become law.

*This is not investment advice.