Brazil's Central Bank Classifies Stablecoins as Electronic Currency Tools

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On July 4, the Central Bank of Brazil stated during a congressional hearing that stablecoins possess the attributes of payment tools and should be classified as electronic currency tools rather than general digital assets, thereby subjecting them to a stricter regulatory framework. The Brazilian Association of Crypto Economy opposed this classification, arguing that it could lead to regulatory conflicts, hinder the application of stablecoins in institutional and retail markets, and divert Brazil from international regulatory trends. Meanwhile, the Central Bank of Brazil has recently increased regulatory requirements for virtual asset service providers, which may put pressure on small and medium-sized crypto institutions.
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