Brazil Bans Stablecoin Use for Cross‑Border Payments
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- Brazil Central Bank issued Resolution No. 561, banning eFX providers from using stablecoins or cryptocurrencies for cross‑border remittances effective Oct 1 2024.
- Wise, Nomad and Braza Bank can no longer settle overseas payments with USDT, USDC, Bitcoin or other digital assets, losing a fast, low‑cost route.
- Individual crypto investors may still buy, sell, hold and transfer crypto through authorized virtual‑asset service providers under Resolution No. 521.
- Brazil’s crypto market moves $6‑$8 bn monthly, with stablecoins accounting for roughly 90 % of volume, according to Receita Federal data.
- Unauthorized eFX firms must apply for BCB approval by May 31 2027 and use segregated accounts and monthly reporting.
Why it matters: Fintechs like Wise and Nomad lose a cheap settlement route for $6‑$8 bn of monthly cross‑border flows, forcing them to use traditional FX and raising transaction costs; regulators gain tighter oversight of crypto‑linked payments.
