Brazil’s ban on stablecoin settlement for cross-border payments takes effect

Brazil’s ban on using stablecoins and other cryptocurrencies to settle cross-border payments took effect on October 1, closing a back-end settlement route used by regulated electronic foreign exchange providers. The central bank set the rule in Resolution BCB 561, published on April 30, according to CoinDesk, with adaptation deadlines running into 2027.

The resolution governs eFX, Brazil’s regulated channel for digital international payments, purchases, withdrawals and transfers. Settlement between an eFX provider and its overseas counterparty must now run exclusively through conventional foreign exchange operations or non-resident accounts denominated in reais, according to Ledger Insights. The rule also limits eFX activity to institutions authorised by the central bank, among them banks, the state lender Caixa Economica Federal, securities and foreign exchange brokers, and payment institutions acting as e-money issuers or acquirers.

CoinDesk identified Nomad and Braza Bank as companies that had built stablecoin settlement into cross-border flows. Nomad uses Ripple’s network to move funds between Brazil and the United States and settle in stablecoins, while Braza Bank issued a real-backed stablecoin on the XRP Ledger. Ledger Insights noted that Braza Bank, as a fully licensed bank, can operate under a separate framework for virtual asset service providers instead of the eFX pathway.

The ban is narrow. Individual investors can still buy, hold and transfer crypto assets through authorised providers, and licensed virtual asset service providers can still use stablecoins for international payments under Resolution BCB 521, which the central bank issued in November 2025 and which has been largely in effect since February, according to Ledger Insights.

Stablecoins are widely used in Brazil. The country’s tax authority recorded 1.13 trillion reais in declared stablecoin transactions between August 2019 and December 2025, about 72 percent of all declared crypto activity in that period, according to CryptoSlate.

Regulators elsewhere are also tightening stablecoin rules. The Monetary Authority of Singapore opened a consultation on September 1 proposing full reserve backing and a ban on paying yield to holders. Brazil’s adaptation deadlines for registration updates and for unauthorised operators seeking approval run into 2027.