Brazil's Strategic Bitcoin Reserve Bill: What Is RESBit?

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On February 13, 2026, Federal Deputy Luiz Gastão (PSD-CE) presented an expanded version of Bill 4501/2024 to Brazil's Chamber of Deputies. The proposal would create a Strategic Sovereign Bitcoin Reserve, known as RESBit, authorizing the government to acquire up to 1 million Bitcoin over five years.

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If approved, this would position Brazil as one of the largest sovereign Bitcoin holders in the world and the first G20 nation to formally codify cryptocurrency as a strategic reserve asset through legislation.

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What Is RESBit?

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RESBit stands for Reserva Estratégica Soberana de Bitcoin (Strategic Sovereign Bitcoin Reserve). It is the formal mechanism proposed under Bill 4501/2024 for managing Brazil's national Bitcoin holdings.

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The bill also establishes SIREBit, the governing system that would oversee how the reserve is managed, monitored, and audited.

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Key provisions of the bill include:

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• Gradual acquisition of at least 1,000,000 BTC over five years
  
  
• Prohibition on selling Bitcoin seized by judicial authorities — confiscated BTC would be retained in the reserve
  
  
• Authorization for Brazilian taxpayers to pay federal taxes in Bitcoin
  
  
• Encouragement of state-supported Bitcoin mining operations
  
  
• Mandatory public disclosure of RESBit's holdings for transparency and auditing
  
  
• Secure storage using cold wallets, multisignature wallets, and internationally recognized custody standards
  
  

The bill also permits temporary holdings of spot Bitcoin ETFs within the reserve portfolio under urgent and limited circumstances.

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How Did This Bill Originate?

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The original proposal was introduced in November 2024 by Congressman Eros Biondini, who proposed the gradual accumulation of Bitcoin to represent up to 5% of Brazil's total foreign exchange reserves. Biondini described the plan as "a strategic measure that positions Brazil as a leader in the new digital economy."

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The February 2026 revision by Deputy Gastão significantly expanded the scope. Rather than capping purchases at 5% of reserves, the updated bill targets a fixed quantity of 1 million BTC — approximately 5% of Bitcoin's total 21 million supply cap.

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At Bitcoin prices between $66,000 and $70,000 as of mid-February 2026, the full reserve would cost approximately $66–70 billion. However, the five-year acquisition timeline spreads costs across multiple budget cycles.

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Why Is Brazil Proposing This?

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The bill frames Bitcoin as a hedge against inflation and fiat currency volatility. It also positions the cryptocurrency as resistant to third-party seizure, making it potentially useful as a sovereignty tool.

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Brazil's foreign exchange reserves currently stand between $300 billion and $370 billion. The proposed Bitcoin allocation would represent a significant but phased commitment within that context.

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Several motivations drive the proposal:

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• Inflation hedging: Brazil has historically faced periods of high inflation, and Bitcoin's fixed supply cap offers a structural contrast to fiat currencies
  
  
• Digital economy leadership: Lawmakers want to position Brazil as a leader in digital asset adoption among emerging economies
  
  
• Global competition: Multiple countries are exploring or implementing Bitcoin reserve strategies, creating competitive pressure
  
  

The Global Context: Nation-State Bitcoin Race

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Brazil's proposal does not exist in isolation. A growing number of countries are exploring Bitcoin as a national reserve asset:

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• United States: The BITCOIN Act of 2025 proposed a federal strategic Bitcoin reserve. President Trump's March 2025 executive order directed federal agencies to explore Bitcoin accumulation from seized assets. Several U.S. states, including New Hampshire and Arizona, have passed or proposed laws allowing public funds to be invested in digital assets.
  
  
• El Salvador: The first country to adopt Bitcoin as legal tender, though its portfolio has experienced significant volatility since 2025.
  
  
• France: Lawmaker Éric Ciotti introduced a pro-crypto bill targeting Bitcoin, euro-backed stablecoins, and local crypto industry growth.
  
  
• Philippines: House Bill 421 proposes a reserve of 10,000 Bitcoin over five years, managed by the central bank.
  
  
• Czech Republic: The central bank has explored Bitcoin allocation.
  
  

If Brazil's bill advances, it would be among the most aggressive sovereign Bitcoin accumulation proposals globally in terms of target quantity.

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What Happens Next?

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The bill's status remains procedural. It has been presented to the Economic Development Commission and must pass through several additional committees before reaching a full floor vote:

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• Finance and Taxation Committee (fiscal impact review)
  
  
• Constitution and Justice Committee (legal compatibility)
  
  
• Science, Technology, and Innovation Committee (technical assessment)
  
  

The timeline for committee review and a potential vote is not immediately clear. The gap between legislative proposal and implementation means markets should treat this as a narrative signal rather than confirmed demand flow — at least for now.

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Risks and Criticisms

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The proposal faces several challenges:

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• Bitcoin volatility: A significant price decline during the accumulation phase could create political and fiscal pressure
  
  
• Central bank alignment: Current Brazilian regulations do not formally recognize Bitcoin as a reserve asset, and the central bank may resist the mandate
  
  
• Funding mechanism: The bill does not fully specify how purchases would be funded, leaving open questions about budget allocation
  
  
• Market impact: Announcing a target of 1 million BTC could front-run the government's own purchases, driving up costs
  
  
• El Salvador precedent: Market analysts have noted El Salvador's Bitcoin portfolio has experienced approximately $300 million in losses since late 2025, raising questions about large-scale sovereign Bitcoin strategies
  
  

What This Means for Bitcoin

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If confirmed, sustained treasury purchases by a G20 nation would represent a new category of structural demand for Bitcoin. However, markets typically react more to executed flows than to legislative headlines.

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The key signals to watch:

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• Whether the bill advances past committee review
  
  
• How the funding mechanism is defined
  
  
• Whether other nations accelerate their own reserve proposals in response
  
  

For now, Brazil's RESBit bill adds to the growing narrative of sovereign interest in Bitcoin as a reserve asset — a trend that continues to reshape how institutions and governments think about digital assets in the broader financial system.

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