Brazil is brewing sovereign bonds priced in RMB, stablecoin regulation sparks a storm

In the face of new global regulations on stablecoin transfers, Brazil is considering issuing its first sovereign bonds priced in RMB—Panda bonds—in an attempt to break free from traditional financial dependence and open a new landscape for diversified cooperation.

These bonds allow non-Chinese institutions to raise funds in the Chinese market, avoiding exchange rate risks. Sources reveal that the plan is not yet finalized and is in the preliminary assessment stage.

Meanwhile, the Central Bank of Brazil is strengthening regulation of stablecoins, prohibiting transfers to overseas wallets to curb potential risks. The country's cryptocurrency market is booming, with a 45% surge in cryptocurrency asset imports in the first eight months of 2023. Central Bank President Campos has clearly stated that stablecoins are becoming the new favorite for local payments, and the application of digital assets is entering a critical transformation period.

More notably, one of Brazil's largest banks, Itaú Unibanco, is evaluating the launch of its own stablecoin, closely monitoring the dynamics and regulatory trends of the U.S. market. The bank's head of digital assets candidly stated that while optimistic about blockchain technology, they remain cautious about stablecoins.

With global regulation on stablecoins ramping up, Brazil's move will undoubtedly trigger a new wave of digital currency storms, potentially reshaping the financial landscape.