The Brazilian government is exploring the application of the Tax on Financial Operations (IOF) to stablecoin cross-border payments, treating them as foreign currency transactions. This initiative follows the Central Bank of Brazil's classification of stablecoin transactions as foreign-exchange operations, aiming to address regulatory gaps. The proposed tax could affect the $30 billion in USDT transactions recorded in the first half of 2025, potentially influencing stablecoin adoption by aligning them with existing dollar taxation policies.