Brazil Cracks Down on Stablecoin Use in Cross-Border Payments

Brazil's central bank has tightened rules on electronic foreign exchange (eFX) providers, banning them from using stablecoins for cross-border settlements. The new measures prohibit regulated eFX providers from settling payments with foreign counterparties using digital assets, effective October 1.

The regulation does not amount to a general ban on stablecoins or individual digital asset transfers. Individuals can continue to buy, hold, and transfer digital assets subject to separate virtual-asset and foreign-exchange rules.

Saudi Arabia quietly withdrew from the China-led mBridge project in 2024, which aimed to enable central banks to conduct cross-border transactions directly using digital currencies. The platform was designed to reduce reliance on traditional cross-border networks, including SWIFT.