Brazil’s Congress has reintroduced Bill 4501/2024, a proposal that would allow the country to acquire up to 1 million BTC over the next five years. Federal Deputy Luiz Gastão said the effort could cost at least $68 billion. If carried out at that scale, the reserve would become the world’s largest national Bitcoin stockpile, exceeding the holdings attributed in the article to countries such as the United States and China.
The proposal is framed as a way to diversify Brazil’s national assets, hedge against inflation, and reinforce financial independence. It would create RESbit, a Strategic Sovereign Bitcoin Reserve to be managed by the central bank together with the Ministry of Finance. The bill also states that Bitcoin should remain protected from confiscation and preserves the right of citizens to hold it in private custody.
Reserve accumulation would extend beyond direct market purchases
Gastão said those guarantees are meant to stimulate investment, support an innovative economic ecosystem, and provide legal certainty. The reserve would not rely only on open-market buying. Under the bill, Brazil could also accumulate BTC through tax payments, temporary ETF holdings, and corporate holdings.
The legislation reaches well past reserve management. It encourages companies to hold or mine Bitcoin and would allow federal taxes to be paid in BTC. It also bars the sale of Bitcoin seized by courts, shielding the asset from government liquidation. The text presents Bitcoin as a monetary sovereignty instrument and says it could support Drex, Brazil’s central bank digital currency.
Semiannual reporting and liability rules are built into the bill
Congressman Eros Biondini, identified as the bill’s author, argued that Bitcoin’s scarcity and security make it superior to, or at least complementary with, gold and dollar reserves. To address transparency, the proposal requires the central bank to publish reports every six months covering all RESbit transactions and its performance.
Accountability measures are spelled out in the draft. Article 6 sets administrative and criminal sanctions for RESbit mismanagement, and managers would have to reimburse public funds if they breach the rules. Brazil’s Internal Revenue Service would have 12 months to build the technological infrastructure needed for Bitcoin integration, while the Executive Branch would be required to regulate the law within 180 days after publication.
Current central bank treatment of Bitcoin may create legal friction
The article also notes a legal hurdle: current central bank regulations do not recognize Bitcoin as a reserve asset. That leaves room for conflict if the bill advances. At the same time, the draft says any administrative restriction on user-controlled wallets would be void, a clause aimed at protecting individual custody rights.
Beyond reserve policy, the measure is presented as part of a broader effort to modernize Brazil’s financial system. It encourages international partnerships to share best practices. Based on the text released so far, the proposal combines sovereign reserve building with rules for taxation, custody, corporate participation, and public disclosure around Bitcoin.