Brazil Central Bank Bars Crypto Settlement in Regulated Cross-Border Payments, Citing 90% Stablecoin Share

Brazil’s central bank issued Resolution BCB No. 561, updating the eFX rules under the foreign‑exchange framework. The rule requires regulated cross‑border payments to settle through traditional FX transactions or non‑resident Brazilian real accounts. Crypto assets, including stablecoins, cannot be used for those settlements. The measure mirrors moves in other emerging markets seeking to curb crypto‑driven capital flight.

- The ban applies to banks, fintechs, and remittance firms operating within Brazil’s licensed international payment infrastructure. - Stablecoins represent roughly 90% of reported crypto flows in Brazil, according to central bank officials. - Bitcoin (BTC) holds a market cap of about $560 billion and traded up 1.8% in the last 24 hours. - Tether (USDT) market cap is roughly $83 billion; USD Coin (USDC) stands near $28 billion. - Globally, stablecoins account for close to 70% of crypto transaction volume, making Brazil’s share notably higher. - Non‑approved eFX providers may keep operating until May 31 2027 if they obtain central bank approval during the transition period.

Regulated payment processors must adjust back‑end systems to route settlements through approved FX channels or non‑resident real accounts. Firms that had experimented with stablecoins for faster, cheaper international transfers will need to seek alternative settlement methods within the regulated space. The rule does not prohibit crypto trading, personal holdings, or peer‑to‑peer transfers, so retail activity can continue unchanged. By separating digital assets from supervised payment rails, the central bank aims to mitigate risks related to capital flows, money‑laundering, and reserve oversight while allowing the broader crypto ecosystem to persist. Analysts note that the shift could raise transaction costs for remittance senders who previously relied on stablecoin rails for near‑instant conversion.