Brazil's Central Bank Prohibits the Use of Stablecoins and Cryptocurrencies for Cross-Border Payment Settlements

In a recent move, Brazil's central bank has forbidden electronic foreign exchange providers from utilizing stablecoins, bitcoin, or other digital currencies to settle international remittances. The new regulation, outlined in BCB Resolution No. 561, was published on April 30 and will come into effect on October 1, with adaptation deadlines extending into 2027. According to the new rules, payments between an eFX provider and its foreign counterpart must be conducted through a foreign exchange transaction or a non-resident real-denominated account in Brazil, with cryptocurrencies no longer being a viable option. This means that remittance companies can no longer accept reais from customers, convert the funds into USDT, USDC, or bitcoin, and then settle the payment abroad on a blockchain. However, the new regulation does not prohibit cryptocurrency trading, and investors are still allowed to buy, sell, hold, and transfer digital assets through authorized virtual asset service providers. The change primarily affects companies such as Wise, Nomad, and Braza Bank, which had previously incorporated stablecoin settlement into their cross-border payment flows. Brazil's cryptocurrency market processes between $6 billion and $8 billion per month, with stablecoins accounting for approximately 90% of the volume. The country has seen significant growth in crypto adoption, ranking fifth globally in 2025, up from tenth the previous year, with around 25 million Brazilians holding or transacting in digital assets. The resolution also imposes restrictions on eFX providers, limiting them to BCB-authorized institutions, and expands their capabilities to handle transfers related to financial and capital market investments in Brazil or abroad, subject to a $10,000 per transaction limit.