A Brazilian lawmaker is pushing for the establishment of a sovereign Bitcoin reserve to compete with other national treasuries.
Brazilian Lawmaker Proposes 1mn Bitcoin Sovereign Reserve, Crypto Tax Breaks
13 February 2026 - 13:25 CET
A draft bill authored by Social Democratic Party Deputy Luis Gastao aims to create a
national strategic reserve to the tune of 1mn Bitcoin, valued at $66bn at current prices.
Under the proposal, the Sovereign Strategic Bitcoin Reserve (RESBit) would look to accumulate the top cryptocurrency to hedge against fluctuations in foreign exchange rates and provide backing for the digital real.
The bill also aims to promote blockchain and Bitcoin mining in the South American country.
Crypto accumulation and tax breaks
If approved, RESBit will look to accumulate the holdings within the next five years, using up to 5% of the country’s forex reserves. The reserve would be managed by the Central Bank of Brazil and the country’s finance ministry.
It will also seek to add confiscated Bitcoin as well as coins received for tax payments, and will consider holding exchange-traded funds (ETFs), according to the draft.
The bill also proposes several tax breaks for Bitcoin holders, aiming to abolish all capital gains from crypto. It would also legalize using Bitcoin for the payment of taxes and fees.
Last year, Brazil ended tax exemptions for small crypto payments and established a flat 17.5% tax on all digital asset transactions.
