Brazil's Central Bank Prohibits Stablecoin and Crypto Transactions for Cross-Border Payments

Brazil's central bank has prohibited the use of stablecoins and cryptocurrencies for settling international remittances by electronic foreign exchange providers. The new rule, outlined in BCB Resolution No. 561, published on April 30, updates the regulations for Brazil's digital international payments system. The updated rules will take effect on October 1, with a phased implementation period extending into 2027. Payments between providers and their foreign counterparts must now be conducted through traditional foreign exchange transactions or non-resident real-denominated accounts in Brazil, with cryptocurrencies no longer being an option. This means that remittance companies can no longer convert customer funds into cryptocurrencies like USDT, USDC, or bitcoin to settle payments abroad on a blockchain. However, the new rule does not prohibit cryptocurrency trading, and investors can still buy, sell, hold, and transfer digital assets through authorized service providers. The change primarily affects companies that had incorporated stablecoin settlement into their cross-border payment flows. Brazil's cryptocurrency 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. The resolution also imposes restrictions on which institutions can operate as electronic foreign exchange providers, requiring them to be authorized by the central bank. Additionally, it expands the scope of electronic foreign exchange to include transfers related to financial and capital market investments, with a transaction limit of $10,000.