Brazil’s central bank banned stablecoins, bitcoin, and other cryptocurrencies from being used to settle overseas remittances through the country’s regulated electronic foreign exchange (eFX) system. Resolution BCB No. 561, published April 30 and taking effect October 1, closes a back-end payment rail that fintechs like Wise, Nomad, and Braza Bank had been using to move money across borders. Stablecoins now account for roughly 90% of crypto-linked international transfers from Brazil, a market that processed about $89 billion in stablecoin volume in 2025 and currently moves $6 billion to $8 billion every month. The rule does not affect retail crypto trading or holding, but it removes a major institutional rail used to convert reais into dollar-pegged assets for international settlement.
A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged one-to-one to the U.S. dollar through reserves held by an issuer such as Tether (USDT) or Circle (USDC).
Key takeaways
- BCB Resolution 561, published April 30, 2026, takes effect October 1.
- Stablecoins, bitcoin, and other cryptocurrencies are banned from settling regulated cross-border eFX payments.
- Affected firms include Wise, Nomad, and Braza Bank, which had built USDT and USDC into their settlement flows.
- Retail crypto trading remains legal under Resolution BCB No. 521, in effect since February 2.
Published: May 3, 2026, 16:00 UTC
What triggered the rule
The central bank cited two concerns. Foreign-issued stablecoins like USDT and USDC operate outside Brazilian regulatory jurisdiction, which the BCB argues weakens its grip on monetary policy and reserve oversight. Stablecoin-settled transactions also leave thinner paper trails than traditional bank transfers, creating gaps for tax authorities and anti-money laundering controls.
Brazil’s crypto-to-PIX volume has grown to roughly twice the global average for stablecoin adoption, and regulators have spent the past year studying how to bring that flow under formal supervision rather than let it route around the banking system. The country processed about $89 billion in stablecoin transactions in 2025, more than the entire African continent combined, according to industry data cited in policy briefings.
What changes for fintechs and users
Settlement between an eFX provider and its foreign counterparty must now move through a recognized foreign exchange transaction or a non-resident real account in Brazil. Authorized institutions already in the eFX business need to update their registration with the BCB’s Unicad system by October 30, 2026. Firms that are not yet authorized may continue operating during a transition window but must file an application by May 31, 2027.
Companies built around stablecoin settlement, including Wise, Nomad, and Braza Bank, will have to either re-engineer their treasury flows around bank-to-bank rails or exit the regulated eFX category. End users sending dollars to family or paying foreign vendors should not see immediate disruption, but the long-term effect is likely higher friction and cost for what had become a near-instant stablecoin-based corridor.
Brazil tightens, Latin America watches
Brazil is the largest crypto market in Latin America by volume, and its rule sets a reference point for other regulators in the region. Argentina, Mexico, and Colombia have all seen growing stablecoin use for remittances, and central banks across the region are working on their own crypto frameworks. Resolution BCB No. 521, which took effect February 2 and brings virtual asset service providers under formal licensing, signaled that Brazil intends to regulate rather than prohibit consumer crypto activity. Resolution 561 draws a harder line at the institutional rail level, where stablecoins compete most directly with the regulated banking sector.
What comes next
Industry groups have asked the BCB to clarify whether stablecoin-denominated invoices used inside corporate treasuries fall under the rule. Wise has not publicly commented on its plans for the Brazilian corridor, and Tether-backed wallet Belo, which raised $14 million in late April to expand across Latin America, is among the firms that will need to test the new boundary between regulated eFX activity and pure retail crypto services. Expect more guidance from the BCB before October, along with attempts by some payment companies to seek a banking license rather than abandon the market.
For more on Brazil’s approach to digital assets, see our coverage of the U.S. Senate CLARITY Act markup and Israel’s first shekel-pegged stablecoin BILS.
Read the original announcement and reporting at the Banco Central do Brasil and at CoinDesk’s policy desk.
Frequently asked questions
Does Resolution 561 ban Brazilians from owning bitcoin or stablecoins?
No. The rule only restricts how regulated cross-border payment providers settle international transactions. Individuals can still buy, hold, and transfer cryptocurrency through authorized exchanges under Resolution BCB No. 521, which has been in force since February 2026.
Which companies are most affected by the ban?
Cross-border payment fintechs like Wise, Nomad, and Braza Bank, which had used USDT and USDC to settle remittances quickly and cheaply. They will need to re-route those flows through traditional foreign exchange channels or non-resident real accounts before October 1, 2026.
When does Resolution 561 take effect?
The resolution was published April 30, 2026, and takes effect October 1, 2026. Authorized eFX firms must update their Unicad registration by October 30, 2026, and firms operating without authorization must apply by May 31, 2027. The phased timeline gives the industry time to rebuild settlement flows around bank rails.
Why is the central bank making this change now?
The Banco Central do Brasil cited monetary sovereignty and tax compliance. Foreign-issued stablecoins like USDT and USDC sit outside Brazilian regulatory reach, and the central bank wants reserves and cross-border flows to clear through institutions it can supervise directly under domestic law.
