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Brazil's Central Bank Bans Stablecoins in Cross-Border Payments Amid Regulatory Shift

Brazil's central bank has implemented a significant ban on the use of stablecoins and cryptocurrencies for settling cross-border payments.

This decision, encapsulated in Resolution BCB No. 561, was published on April 30 and takes effect on October 1, 2026.

Under this new rule, electronic foreign exchange (eFX) providers must conduct transactions solely through traditional foreign exchange methods, effectively removing cryptocurrencies as a payment option.

The resolution targets firms like Wise and Braza Bank that previously incorporated stablecoins into their international payment systems.

Although trading cryptocurrencies is not banned in Brazil, these measures tighten regulations on how digital assets can be utilized in global transactions.

With stablecoins making up approximately 90% of Brazil's $6 billion to $8 billion monthly crypto movement, this decision reflects regulators' concerns over taxation, money laundering, and asset backing.

The ruling restricts eFX services exclusively to institutions authorized by the central bank but allows existing operators to apply for authorization by May 2027.

Additionally, the central bank signaled that further restrictions on stablecoins issued outside its oversight could be forthcoming.

As a result, crypto service providers will need to reshape their business operations to comply with these regulations.

In summary, while cryptocurrency trading remains viable for Brazilian investors, the framework for its use in cross-border settlements is now clearly defined by the central bank's recent actions.