Brazil Imposes Restrictions on Stablecoin Use in Cross-Border Payments

Brazil's central bank has implemented new regulations governing the use of stablecoins and cryptocurrencies for cross-border payments. According to Resolution BCB 561, effective from October 2026, payment institutions and fintech providers are no longer allowed to settle transactions with overseas counterparties using stablecoins or cryptocurrencies.

However, licensed virtual asset service providers (VASPs) can still use stablecoins for international payments under a separate framework established by Resolution BCB 521. This framework brings virtual asset services inside Brazil's foreign exchange market and allows banks that are authorized as VASPs to operate under this pathway.