The Central Bank of Brazil wants to classify stablecoins as monetary instruments, and Abcripto is directly pushing back—this regulatory showdown is getting interesting.

According to Bitcoin.com, Fábio Araújo, an advisor at the Brazilian Central Bank's Department of Financial System Regulation (Denor), stated during a Brazilian congressional hearing on the stablecoin regulatory framework PL 4308/2024 that stablecoins differ from digital assets like Bitcoin and Ethereum, and when they possess payment instrument characteristics, they should be understood as a monetary tool. The Brazilian crypto economy association Abcripto opposes this classification, stating that such a move could lead to regulatory conflicts, affect stablecoin adoption at both institutional and retail levels in Brazil, and create obstacles for virtual asset service providers (VASPs). Bitcoin.com also mentioned that the Brazilian Central Bank recently issued a new resolution aligning VASPs' regulatory treatment with that of securities brokers, distributors, and other institutions, potentially driving industry consolidation.