Crypto Market Gains Political Traction in Brazil

The crypto market has firmly entered the political arena in Brazil. Within the halls of Congress, in meetings, and behind the scenes of Brasília’s political landscape, there’s a unanimous sentiment among deputies and senators showing interest in crypto: the sector’s data is captivating.

The financial movement is undoubtedly a major draw. However, it’s the political power that this market now represents that truly excites politicians.

Vote and Money: The Formula for Political Power

Politics is driven by two fundamental factors: votes and money. Money sustains the votes, which in turn secure political power.

The crypto market possesses both. Its ability to generate votes has made it truly relevant. The crypto community has organized, grown, and can now influence or even determine election outcomes.

17.5% of the Population Invests in Crypto Assets

Recent data from Triple-A consultancy reveals that Brazil currently ranks sixth globally in crypto asset adoption.

Approximately 17.5% of the Brazilian population holds some form of crypto in their portfolio, whether stablecoin or altcoin.

This figure represents a massive electoral base, significantly larger than the number of stock market investors in the country. A Datafolha survey conducted between October 2nd and 17th, 2024, among individuals aged 25 to 45 with investments, supports this.

The United States Example: Trump and Crypto Votes

In the United States, former President Donald Trump had to incorporate the crypto market into his speeches and agenda.

This directly impacted election polls. Following pro-digital asset statements, a significant increase in his voting intention was observed.

In Brazil, the Pro-Bitcoin Discourse Gains Momentum

The Brazilian scenario is beginning to follow a similar path. Some parliamentarians aiming to champion this cause are adopting a pro-Bitcoin stance. The goal is to win votes and attract campaign donors interested in the sector’s advancement.

An Obstacle: The Lula Administration

Many of these parliamentarians aspire to be the pioneers of the crypto market in Congress. However, a considerable obstacle exists: the Lula administration.

Brazil is experiencing a power struggle. Congress isn’t aligned with the Executive branch. Former Speaker of the House, Arthur Lira, pressured the government on various issues.

While the current Speaker is closer to the government, they prioritize defending the interests of the House when necessary.

The Taxation Challenge and the Absence of a Crypto Caucus

The crypto market has become a target of the current administration. A new Provisional Measure proposes a 17.5% tax, sparking strong reactions behind the scenes. The issue is the lack of an organized caucus in Congress to structurally defend the sector.

The few deputies who raise this issue act independently, seeking prominence.

Traditional Banks Still Influence the Political Game

Beyond the lack of a strong caucus, there’s another challenge: the influential power of traditional banks. They still hold significant sway in Congress decisions and historically haven’t favored the popularization of the crypto market.

Exchanges Begin to Organize Politically

Behind the scenes, it’s rumored that exchanges have begun to organize politically to compete for space and influence, mirroring the actions of major banks.

The Start of a Battle for Influence, Money, and Votes

The landscape is just beginning to take shape. The battle for influence, money, and votes in the crypto market has officially begun in Brasília. Whoever understands this first will gain an advantage.

Let the competition for influence, money, and votes commence.