Brazil Central Bank Cuts Stablecoin Settlement Options
Brazil's central bank has announced that it will restrict the use of virtual assets, including stablecoins, in settling international payments from October 1. The new rule applies to the settlement leg between regulated foreign-exchange providers and their overseas counterparties.
Under the current system, providers can bundle multiple individual payments together and settle them once with their foreign counterparty using virtual assets. However, this structure will no longer be permitted for certain transactions.
The restriction is aimed at giving the central bank clearer visibility into flows that previously could not be fully seen within the formal exchange system. The new rule does not affect individual international transfers using virtual assets, which remain permitted under Brazil's existing framework.