Brazil’s Central Bank has banned the use of stablecoins and cryptocurrencies for settlement in cross-border payments, effective October 1, 2026.
The resolution, part of Brazil’s Virtual Assets Law, aims to curb the use of virtual assets in regulated foreign exchange transactions. The restriction responds to concerns about money laundering, tax evasion, and monetary sovereignty. Despite this ban, unregulated peer-to-peer crypto transfers outside the official electronic foreign exchange channels remain permissible. This move follows a significant increase in stablecoin usage, which now constitutes 90% of reported cross-border crypto remittances.
Market Impact: The ban could reduce Bitcoin’s utility and demand in one of its significant markets, though initial price impact appears muted. Prediction markets maintain high confidence that Bitcoin will close above $68,000 on both May 1 and May 2.