Brazil's Central Bank Prohibits Stablecoin and Crypto Use in Cross-Border Payment Settlements

The Central Bank of Brazil has introduced a ban on the use of stablecoins and other cryptocurrencies for settling international remittances by electronic foreign exchange providers. The new rule, outlined in BCB Resolution No. 561, updates the regulations for Brazil's digital international payments system and will come into effect on October 1. The ban prohibits payments between an eFX provider and its foreign counterpart from being settled using cryptocurrencies, instead requiring the use of foreign exchange transactions or non-resident real-denominated accounts in Brazil. This change primarily targets companies that had incorporated stablecoin settlement into their cross-border payment flows, such as Wise and Braza Bank. Notably, the ban does not extend to crypto trading, and investors are still permitted to buy, sell, and hold cryptocurrencies through authorized virtual asset service providers. The Brazilian crypto market processes between $6 billion and $8 billion monthly, with stablecoins accounting for approximately 90% of the volume. The country has seen significant growth in crypto adoption, ranking fifth globally in 2025, with around 25 million Brazilians engaging in crypto transactions. The resolution also imposes restrictions on eFX providers, limiting their operations to BCB-authorized institutions and requiring firms without authorization to apply by May 31, 2027. Furthermore, it expands the scope of eFX to include transfers related to financial and capital market investments, subject to a $10,000 per transaction limit. This regulatory move is part of a broader effort to establish clear guidelines for the crypto market in Brazil, defining the boundaries within which cryptocurrencies can operate.