#StablecoinPayments

Stablecoins are growing in Brazil, especially as a form of protection against the depreciation of the Brazilian real. These digital currencies are pegged to stable assets, such as the US dollar, and have been used for financial transactions and as a store of value.

Regulation

The Central Bank of Brazil (BCB) proposed regulations for stablecoins, including the prohibition of transfers to self-custody wallets, such as MetaMask or Trezor. This measure aims to concentrate operations within the regulated environment and prevent financial crimes. The proposal is under public consultation until February 2025.

Market Impact

Experts believe that the prohibition may be difficult to enforce, as peer-to-peer (P2P) transactions and decentralized platforms are harder to control. Additionally, the restriction may impact the adoption of cryptocurrencies in Brazil and lead users to migrate to decentralized solutions.

Stablecoins in Brazil

Some of the main stablecoins in Brazil include:

- USDT (Tether): pegged to the US dollar, widely used for payments and store of value.

- BRL1: stablecoin pegged to the real, launched by a consortium of Brazilian exchanges, focusing on transactions between platforms.

- BRZ: stablecoin pegged to the real, used for international remittances and financial operations.