A major political debate is emerging in Brazil: should the country store Bitcoin as a reserve asset? Presidential candidate Renan Santos is deeply exploring this idea, drawing on the experience of ancient Central American civilizations.

Santos mentioned the example of El Salvador — which made Bitcoin an official means of payment in 2021. However, he described his proposal as different from El Salvador’s. Brazil is considering gradually, and wisely, accumulating Bitcoin. That’s why he is proposing a dollar-cost averaging strategy, meaning buying in waves over time. This is a way to reduce risk.

Considering the country’s economic situation, this proposal is attractive. Brazil has historically faced high inflation — Bitcoin is seen as a hedge against inflation. Additionally, it serves as a means of payment that is not tied to the national currency. Therefore, it offers investors diversification opportunities.

But there are some issues. Bitcoin’s price is highly volatile. If the country’s reserves drop sharply, the treasury could suffer significant losses. That’s why the technical aspects must be clear — custody, security, audit protocols.

An interesting aspect is the potential of blockchain technology to combat corruption. If government contracts, tender processes, or fund allocations are recorded on the blockchain, everything remains transparent. No one can hide anything. Land registries, social welfare payments — all can be stored and verified on the blockchain. Countries like Georgia and Dubai are already experimenting in this direction.

Therefore, Santos’s proposal is not just about Bitcoin. It’s about modernizing the country’s governance with new technology. After Brazil passed a law regulating virtual assets in 2022, adopting this step becomes easier.

The topic will be a key issue in the 2025 elections. When politicians talk about innovation and economic development — this is crucial for the future of Latin America’s largest country.