Brazil's Central Bank Restricts Crypto Settlement in Regulated Payment Rails

Brazil's central bank has introduced a new foreign exchange rule framework that blocks cryptocurrency settlement in regulated eFX cross-border payment rails. The decision requires banks and fintech firms to rely on fiat channels for international transfers within supervised systems only.

Regulators argue that nearly 90% of crypto remittances use stablecoins, raising concerns about compliance and monetary control. Authorities aim to preserve monetary sovereignty and improve traceability of transfers under a regulatory oversight framework.

The new policy strengthens the separation between regulated rails and crypto networks, but market participants must choose between regulated fiat rails or crypto-native channels for cross-border settlements under compliance rules.