Brazil's central bank bans stablecoin and crypto settlement in cross-border payments
The ban applies to fintechs and payment firms, closing the back-end payment rail for cross-border flows, but individual crypto investors can still buy and hold assets.
AI Summary
Brazil's central bank has banned electronic foreign exchange (eFX) providers from using stablecoins and cryptocurrencies like Bitcoin to settle cross-border payments and remittances, effective October 1, 2026. The ban applies to fintechs and payment firms, requiring them to use traditional foreign exchange transactions or non-resident real accounts instead, though individual investors can still buy and hold crypto assets through authorized providers. Unauthorized firms must apply for central bank approval by May 2027 to continue operating.