Luiz Inácio Lula da Silva wins Brazil’s presidential race — What does this mean for crypto?

In a close race with outgoing Brazilian President Jair Bolsonaro, Luiz Inácio Lula da Silva, also known simply as “Lula,” won the country’s presidential election following a run-off race.

According to data from Tribunal Superior Eleitoral, Lula defeated Bolsonaro in an Oct. 30 run-off election with 50.9% of the vote — roughly 60.3 million people to the soon-to-be former president’s 58.2 million. Though the election outcome showed Lula has the right to take office starting in January 2023, reports have suggested that Bolsonaro may intend to challenge the results.

Democracia. pic.twitter.com/zvnBbnQ3HG

— Lula 13 (@LulaOficial) October 30, 2022

Lula, who also served as the president of Brazil from 2003 to 2010, reportedly said in October that cryptocurrencies “deserved the attention of authorities,” calling for the country’s central bank to create a framework for digital assets aligned with international standards on Anti-Money Laundering and illicit practices. He is also allied with former central bank president Henrique Meirelles, who took an advisory role at crypto exchange Binance in September but reportedly may be considering a position in Lula’s government.

During his presidential campaign, Lula announced that his plan for Brazil’s government had been registered on the Decred blockchain as an example of “an innovative and incorruptible technology of records distributed by computers around the world that is also behind Bitcoin.” However, the future president has largely not publicly spoken on crypto and blockchain.

Related: Brazil’s Rio de Janeiro will accept crypto-payments for property taxes

Cointelegraph reported that more than 12,000 Brazil-based companies held crypto as of August, suggesting that digital assets may play a larger role in the country’s economy in the future. Some lawmakers have also proposed bills aimed at making crypto payments legal in Brazil.