Luiz Inácio Lula da Silva was reelected president of Brazil with 51.79% of the valid vote, defeating Flávio Bolsonaro despite the latter’s first-round lead. In illiquid trading on Sunday evening, the real fell as much as 12%, while USDT traded up to 9% above the official dollar rate and Brazilian equities suffered steep losses. Stablecoins account for about 80% of crypto transaction volume reported in Brazil, highlighting their role as a refuge when the real depreciates sharply. Lula’s reelection extends the central bank’s tightening of crypto regulation, including a ban on banks using unlicensed crypto platforms from November 6. Bitcoin, stable at around $80,000, mechanically rose to approximately 440,000 reais in local currency because of the national currency’s weakness.
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