Brazil's central bank bans stablecoin and crypto settlement in cross-border payments

The ban applies to fintechs and payment firms, closing the back-end payment rail for cross-border flows, but individual crypto investors can still buy and hold assets.\nWhat to know : Brazil’s central bank banned electronic foreign exchange (eFX) providers from using stablecoins and other cryptos (like Bitcoin) to settle overseas remittances, effective October 1. The ban applies to fintechs and payment firms, closing the back-end payment rail for cross-border flows, but individual crypto investors can still buy and hold assets. EFX payments must now use foreign exchange transactions or non-resident real accounts. Unauthorized firms must apply for BCB approval by May 2027.