Brazil's central bank is set to enforce Resolution 561 on October 1, restricting the use of stablecoins and cryptocurrencies for cross-border payments. This move comes as dollar-linked stablecoins dominate Brazil's crypto transactions, accounting for 90% of the volume, primarily for payments and settlements. Despite their widespread use, the central bank views stablecoins as a threat to monetary sovereignty and regulatory controls.
The U.S. has labeled Brazil's Pix payment system as a trade barrier, adding pressure to the country's financial infrastructure. While Pix efficiently handles domestic payments, stablecoins offer expanded capabilities through blockchain networks. The regulatory landscape is expected to evolve as Brazil develops its own tokenized settlement system, Drex, amid ongoing debates on digital financial infrastructure.
Brazil Limits Stablecoin Use Amid U.S. Pressure on Payment Systems
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