Brazil is taking a bold step in the world of cryptocurrency. The government has reintroduced a bill to create a Strategic Bitcoin Reserve. If passed, this legislation would allow the country to acquire up to 1 million BTC. This is a great increase from the 5% reserves cap in 2025, which amounted to about 170,000 BTC.
LATEST: Brazil reintroduces bill to create a Strategic Bitcoin Reserve, allowing the country to acquire up to 1M $BTC. pic.twitter.com/ylxXz8L4wo
— Cointelegraph (@Cointelegraph) February 13, 2026
Bitcoin as a Hedge Against Economic Risks
The bill’s main goal is to protect Brazil’s economy against inflation and currency fluctuations. Lawmakers view Bitcoin as a “digital gold” that can help preserve value during economic uncertainty. By holding a large reserve of Bitcoin, Brazil could strengthen its financial strategy and reduce dependency on traditional currencies.
The concept first emerged in 2024 and gained traction in mid-2025. Despite some skepticism from the Central Bank, the government has continued to push the proposal. Supporters argue that it positions Brazil ahead of other nations exploring sovereign crypto holdings.
Market and Policy Implications
The reintroduction of the bill has already sparked discussions among investors and policymakers. Analysts note that acquiring such a huge amount of Bitcoin could create supply shocks in the market. This may influence global Bitcoin prices and trading dynamics.
Additionally, the move shows a growing trend of nation-states considering digital assets as part of their financial planning. Early reactions on social media show mixed opinions, but there is increasing awareness of crypto policy in Brazil.
Broader Institutional Interest
Brazil is not alone in exploring sovereign Bitcoin reserves. Countries worldwide have begun to include Bitcoin in official reserves to hedge against economic uncertainty. By expanding its planned holdings, Brazil could become one of the largest government participants in the cryptocurrency market.
This legislation also reflects a shift in how governments approach digital assets. Rather than simply regulating or restricting cryptocurrencies, Brazil is considering active investment. Such strategies could influence other emerging markets to follow suit and incorporate Bitcoin into national reserves.
Bitcoin Strategy Could Transform Finance
If passed, the Strategic Bitcoin Reserve bill would mark a historic moment for Brazil and global crypto policy. It demonstrates a proactive approach to managing national financial risks while embracing innovation. Observers will closely watch both the legislative process and the market’s response to this potentially transformative move.
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