BrazilCryptoAdoption

Coinbase, a leading cryptocurrency exchange, has voiced strong opposition to Brazil’s proposed regulations on stablecoins. The measures, aimed at curbing illicit activities, would ban withdrawals of stablecoins to self-hosted wallets, raising concerns about their impact on adoption and decentralized finance (DeFi) in the region.
Coinbase Criticizes Ban on Self-Hosted Wallets
Tom Duff Gordon, Coinbase’s Vice President, criticized the Central Bank of Brazil's approach, stating it could stifle innovation and harm users relying on stablecoins for financial operations.
“The Central Bank should reconsider. Stablecoins are essential for the future of the internet and decentralized finance, and self-custodial wallets play a critical role in this ecosystem,” Gordon explained.
Coinbase Offers Safer Alternatives
As part of the public consultation process, Coinbase proposed solutions to address the central bank's concerns about money laundering (AML) and know-your-customer (KYC) practices without banning withdrawals.
Gordon emphasized, “We presented arguments on how this model can be implemented safely while addressing legitimate concerns. The proposed ban risks criminalizing decentralized finance applications, which heavily rely on stablecoins.”
Why Brazil Is Targeting Stablecoins
Brazilian authorities are concerned about the rise of stablecoins in remittances and their potential use for tax evasion and money laundering. To address these concerns, they floated the idea of taxing stablecoin transactions and banning withdrawals to untraceable wallets.
However, experts argue that banning self-hosted wallet withdrawals would hinder lawful DeFi applications and disrupt the use of stablecoins for everyday transactions in Brazil.
Coinbase Advocates for Growth and Innovation
Coinbase’s response highlights the need for balanced regulations that promote innovation while addressing security risks. The company’s stance underscores its commitment to shaping policies that support global crypto adoption without compromising user freedom.
The post appeared first on CryptosNewss.com
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Introducing Drex: Brazil's Digital Currency for a Modern Financial System

Drex, also known as Real Digital, is Brazil's digital counterpart to the national currency, the Brazilian real. Developed by the Central Bank of Brazil, Drex is set to launch in 2027 and will utilize Distributed Ledger Technology (DLT), offering enhanced security and transparency for digital transactions.

Key features of Drex include:

1. Fixed Value: Each Drex will maintain a value equal to the physical real, ensuring stability and ease of use.

2. Advanced Technology: Leveraging DLT, akin to blockchain, Drex will guarantee secure, transparent, and traceable transactions.

3. Versatility: Drex will be used for various financial activities, from online shopping to service payments and even real estate transactions via smart contracts.

4. Dual Currency System: Drex won’t replace the physical real but will work alongside it, providing a digital alternative for everyday transactions.

5. Conversion Process: Users will need an authorized financial institution, such as a bank, to convert between physical reais and Drex.

The primary goal of Drex is to modernize Brazil’s financial infrastructure, enabling faster, more secure, and accessible transactions. By offering digital alternatives like smart contracts and automated financing, Drex aims to democratize access to advanced financial services, making the system more inclusive for all.
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