I just saw the new move by the Central Bank of Brazil regarding regulations on cryptocurrencies in cross-border payments, and this is worth paying attention to.

In simple terms, the Brazilian Central Bank issued Resolution No. 561 at the end of April, making adjustments to the eFX framework. This eFX is Brazil’s system for regulating digital international payments. The new regulation prohibits virtual assets from being used for settlement within this regulated channel. In other words, payments and receipts between eFX service providers and foreign counterparts must go through traditional foreign exchange channels or non-resident real accounts, and stablecoins or other cryptocurrencies can no longer be used.

But there’s an important point to understand — this does not mean Brazil is banning cryptocurrencies outright. Ordinary users and businesses can still buy, hold, and transfer digital assets; only remittance service providers are restricted from using these assets as infrastructure for international payment settlements. From this perspective, Brazil’s attitude toward cryptocurrencies is actually nuanced.

Why is Brazil doing this? The main concern is stablecoins. According to data, in the first half of 2025, Brazil recorded 227 billion reais in cryptocurrency transactions, with USDT accounting for about two-thirds and Bitcoin for 11%. Regulators see this concentration as a concern, fearing it could be used to bypass traditional banking systems and also recognizing the risks in cross-border payments. After all, tokens pegged to the dollar can transfer value directly, bypassing intermediary networks, which poses a challenge for central bank oversight.

The transition arrangement is as follows: currently, companies that are not authorized but provide international payment services can continue operating if they apply for authorization before May 31, 2027. EFX service providers that have already obtained authorization are required to update their registration in the Central Bank’s Unicad system by October 30, 2026. The new rules also require the establishment of segregated accounts for customer funds, monthly reporting to the Central Bank, and transaction records to be kept for 10 years.

This change will definitely impact fintech companies that rely on cryptocurrency settlements to reduce costs. Those using stablecoins to bypass intermediary fees and speed up processing are now forced to revert to fiat channels, which will increase operational costs. However, from a regulatory perspective, this also reflects how central banks around the world are paying more attention to cross-border flows of digital assets. Does Brazil support cryptocurrencies? Based on this policy, the answer is conditional support — you can hold and trade, but within formal payment systems, the Central Bank still wants to maintain control.