Brazil’s central bank has prohibited electronic foreign exchange providers from using stablecoins and cryptocurrencies to settle cross-border remittances, effective October 1, to regulate international digital payment infrastructure.

Key Points

• Resolution No. 561 mandates that all eFX payments must be settled through traditional foreign exchange transactions or non-resident real-denominated accounts.
• The ban specifically targets fintechs and payment firms, such as Nomad and Braza Bank, that previously utilized blockchain networks for cross-border settlement.
• Individual investors remain permitted to buy, sell, and hold cryptocurrencies through authorized virtual asset service providers.
• Firms currently operating without central bank authorization must apply for official approval by May 31, 2027, to continue providing eFX services.
• The regulation introduces a $10,000 per transaction limit for transfers related to financial and capital market investments.

Why it Matters

This policy shift forces fintech companies to abandon blockchain-based settlement rails in favor of traditional banking systems for international transfers. By restricting the use of stablecoins in institutional payment flows, the central bank is asserting tighter control over Brazil's rapidly growing digital asset market.