Brazil Proposes Plan to Buy 1 Million Bitcoin Over Five Years

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Brazil’s Congress is once again debating a bold proposal that could reshape the country’s financial strategy. Lawmakers have reintroduced a bill that would allow the gradual purchase of up to 1 million Bitcoin over five years, creating what they call the Strategic Sovereign Bitcoin Reserve (RESbit). If approved, the plan would make Brazil one of the largest holders of Bitcoin in the world and show strong support for the asset from a major economy.

How It Could Impact Bitcoin’s Supply and Price

Bitcoin has a fixed supply of 21 million coins, and many are already lost or held for the long term. If a large country buys up to 1 million BTC over five years, it would reduce the amount available in the market.

If the buying happens slowly, the price impact may not be immediate. However, steady government purchases could increase demand over time and reduce available supply. Even the expectation of such buying could push prices higher, as traders often react in advance. When a country commits to buying Bitcoin, it sends a strong signal that it believes in its long-term value.

When the Effects Could Begin

The timing depends on the political process. The bill must pass through congressional committees and may face resistance from Brazil’s central bank, which does not currently treat Bitcoin as part of official reserves. This process could take months or even longer.

Still, markets often react before policies are fully implemented. If the proposal gains support or shows signs of approval, prices could move even before any actual purchases begin. On the other hand, delays or rejection could reduce excitement in the market. Early price changes are likely to be driven by sentiment, while later effects would depend on real buying activity.

Broader Impact on the Crypto Market

Beyond Bitcoin, such a move could influence how other governments view digital assets. If Brazil commits around $68 billion to buying BTC, other emerging economies may consider similar steps so they are not left behind. The revised bill sets a clear goal of acquiring at least 1,000,000 BTC over five years.

This could encourage more governments to hold Bitcoin as part of their national reserves, similar to how countries hold gold. Greater government participation could also attract more institutional investors and increase trust in the crypto market.

Over time, the plan could strengthen Bitcoin’s image as “digital gold” and as a way to protect against currency risks. Although the proposal still faces regulatory and political challenges, its discussion alone shows a shift in how some countries view Bitcoin — not just as a speculative asset, but as a possible part of national financial strategy.