Brazil: Lawmakers Propose Accumulation of 1 Million Bitcoin

A revised bill to create a strategic Bitcoin reserve has been introduced in the Brazilian Congress. The new text proposes that the country should accumulate one million BTC within five years – a significantly more ambitious goal than the original draft by Representative Eros Biondini, which merely called for diversifying foreign exchange reserves by up to five percent ^[1].

The revised proposal comes from Luiz Gastão, rapporteur of the Economic Development Committee. In addition to the gradual acquisition of Bitcoin, the draft includes a ban on selling confiscated BTC, acceptance of tax payments in Bitcoin, and promotion of state-run mining operations. The Treasury would be responsible for implementation ^[1].

However, prospects for success are considered low. At a hearing last summer, representatives from the Central Bank and Finance Ministry clearly positioned themselves against a Bitcoin reserve. They argued that Bitcoin should be classified as a capital asset according to IMF rules and is too volatile for currency reserves ^[1]. With one million BTC – currently worth nearly 70 billion US dollars – Brazil would become the largest state Bitcoin holder, far ahead of the United States.