Brazil Central Bank Bans Crypto Settlement in Official Cross-Border Payment Rails

Brazil's Central Bank has tightened its grip on the country's formal remittance infrastructure by banning cryptocurrency settlements in official cross-border payment rails. According to Resolution BCB 521, banks, payment institutions, and licensed money-transfer operators are no longer allowed to settle transactions using cryptocurrencies or stable-coins within the regulated eFX system.

The change comes after internal studies revealed that nearly 90% of crypto remittances originating in Brazil utilize dollar-pegged tokens such as USDT and USDC. Regulators fear that allowing these tokens to flow through a supervised FX channel would undermine tax collection, compromise monetary policy transmission, and create blind spots for anti-money laundering controls.

The Central Bank's decision is expected to impact corporate mobility managers, who often rely on digital-asset rails to facilitate cross-border payroll, per-diem, and relocation allowances. Companies may need to review their service-provider contracts, confirm compliance with Resolution 521, and alert travelling staff about the changes.