Brazil Central Bank Bans Stablecoin Use in Cross-Border Payments

New Rule Blocks Crypto Settlement for International Transfers

Central Bank of Brazil has banned the use of stablecoins and cryptocurrencies such as Bitcoin for settling cross border payments through its regulated electronic foreign exchange (eFX) system. The measure, introduced under Resolution No. 561 on April 30, will take effect on October 1, with compliance deadlines extending to 2027.

Fintech and Payment Firms Face Strict Restrictions

The rule applies to fintechs and payment providers, requiring all international transfers to be processed through traditional foreign exchange transactions or non-resident real-denominated accounts. This effectively blocks companies from converting local currency into assets like USDT or USDC for blockchain-based settlements.

Crypto Trading Remains Unaffected for Individuals

Despite the restrictions, crypto usage is not banned entirely. Individuals can still buy, sell, and hold digital assets through authorized providers under existing regulations. The policy specifically targets backend payment infrastructure rather than retail investment activity.

Impact on Brazil’s Growing Crypto Market

Brazil processes between $6 billion and $8 billion in monthly crypto transactions, with stablecoins accounting for about 90% of volume. The country ranked among the top global adopters in 2025, with roughly 25 million users engaged in digital assets.

The move signals a broader effort to limit crypto’s role in financial infrastructure while maintaining space for regulated market participation.