The Brazilian central bank has implemented a new regulation that restricts the use of stablecoins and cryptocurrencies for cross-border payment settlement.
This move is expected to have significant implications for fintech and payment firms in Brazil, which had been using digital assets as a fast and cost-effective way to facilitate international transactions.
The ban does not apply to personal crypto investments or domestic trading, but companies must now find alternative methods for cross-border payments, such as traditional banking channels.
Some fintechs may try to route their transactions through jurisdictions with looser regulations, while others will have to absorb the higher costs of using traditional banking infrastructure.