Brazil Central Bank Bars Virtual Assets From eFX Payments

The Banco Central do Brasil (BCB) has issued Resolution BCB No. 561, which prohibits the use of virtual assets for payments and receipts within its regulated eFX framework for international transfers. Under this new rule, transactions between eFX providers and foreign counterparties must be conducted exclusively through traditional foreign exchange transactions or movements in non-resident Brazilian real accounts.

This regulation is not a total ban on cryptocurrency in Brazil, but rather a measure to ensure that regulated cross-border payment flows remain within supervised foreign exchange rails. The central bank's decision follows concerns raised by Governor Gabriel Galipolo regarding the surge in stablecoin usage, which reportedly accounts for about 90% of crypto flows in the country, potentially posing risks related to taxation, money laundering, and monetary sovereignty.

Furthermore, the BCB has signaled potential restrictions on stablecoins issued by entities outside its regulatory perimeter. The central bank expressed that real-denominated stablecoins issued abroad could threaten regulatory equality, while foreign-currency stablecoins raise concerns regarding jurisdiction and the fragmentation of the national payments system.

(Source：Cointelegraph)