Brazil Central Bank Prohibits Crypto Settlement for Cross-Border Payments

Brazil's central bank (BCB) is tightening its grip on the digital asset ecosystem by banning the use of stablecoins, Bitcoin, and other cryptocurrencies for the settlement of cross-border payments. Under Resolution No. 561, electronic foreign exchange (eFX) providers are now prohibited from using blockchain-based assets to move funds internationally. The regulation, which takes effect on October 1, requires that payments between eFX providers and foreign counterparties be conducted via traditional foreign exchange transactions or non-resident real-denominated accounts. This effectively closes the back-end payment rails that several fintechs had integrated to lower costs and increase speed. Companies such as Nomad and Braza Bank, which utilized the Ripple network and real-backed stablecoins for U.S.-Brazil flows, will be forced to restructure their settlement processes. While the rule targets the infrastructure of regulated eFX firms, it does not ban the trading, holding, or transfer of cryptocurrencies by individual investors through authorized service providers. The move comes as Brazil solidifies its position as a global crypto hub, ranking fifth in adoption in 2025 with approximately 25 million users. Monthly crypto volumes in the country range between $6 billion and $8 billion, with stablecoins comprising roughly 90% of that activity. Additionally, the resolution limits eFX operations to BCB-authorized institutions, including banks and payment issuers. However, it does expand the scope of eFX to allow transfers for capital market investments, provided they remain under a $10,000 per transaction limit.