Presidential Candidate Renan Santos Proposes National Bitcoin Reserve and Zero-Tax ‘Crypto-Friendly’ Rio

A presidential candidate in Brazil’s 2026 election, Renan Santos, is calling for the creation of a national Bitcoin reserve and the establishment of a "crypto-friendly" regulatory environment in Rio de Janeiro, a move that could fundamentally change the operating environment for Brazilian Virtual Asset Service Providers (VASPs). Mr. Santos, president of the newly formed Missão Party, is positioning his campaign on the right as an alternative to the two main polarized blocs, arguing that Brazil must adopt more radical pro-technology policies to fight corruption and promote economic growth. The proposal directly cites the precedent set by El Salvador’s move to incorporate Bitcoin into its national treasury, arguing that a reserve is a "feasible" economic strategy for a country the size of Brazil.

The domestic centerpiece of the platform focuses on transforming Rio de Janeiro into a global digital asset hub through a supportive regulatory framework, including substantial tax cuts for the sector. Mr. Santos’s plan includes the possibility of zeroing taxes on crypto transactions to attract capital, talent, and decentralized finance operations away from competing global centers. While a long-shot in the coming October election, the proposal injects a major new topic into the national political debate and is being watched closely by the country’s burgeoning fintech and digital asset sectors.

The proposal builds on policies already established in Rio de Janeiro, which in 2023 became the first major Brazilian city to accept cryptocurrencies for certain tax payments. The city currently allows residents to pay their property tax—known as the Imposto sobre a propriedade predial e territorial urbana, or IPTU—in digital assets through third-party VASPs. Under the current municipal arrangement, the VASPs instantly convert the crypto to the local currency, the Real, ensuring the city treasury only receives fiat, while the taxpayer receives a new avenue for settlement. The current city government, led by Mayor Eduardo Paes, has previously signaled its ambition to make the coastal metropolis a global cryptocurrency hub, including a plan to allocate 1% of its treasury to digital assets.

If enacted, the proposed national tax and regulatory framework would impact the entire spectrum of financial technology firms, including exchanges, payment processors, and lending platforms. The move would offer a clear, government-backed pathway for greater integration of digital assets into the formal Brazilian economy. The feasibility of such a policy will be tested as the election campaign progresses toward the October 4 vote.

What it touches The prospect of a favorable, zero-tax regulatory environment in Brazil’s second-largest city would significantly alter the competitive landscape for financial technology companies and virtual asset service providers operating in the country. The policy directly impacts the exposure and operating models of companies that are either fintech-focused or heavily reliant on the Brazilian consumer payment and regulatory structure, including firms such as PagSeguro Digital (PAGS: +1.15% on the NYSE) and Inter & Co. (INTR: +3.37% on NASDAQ).