Brazil's Central Bank Restricts Use of Cryptocurrencies for Cross-Border Payments

Brazil's central bank has implemented a new regulation that prohibits regulated electronic foreign exchange (eFX) providers from using stablecoins, Bitcoin, or other cryptocurrencies for settling cross-border payments. According to NS3.AI, Resolution No. 561, which was published on April 30, took effect on October 1. The regulation allows some firms until 2027 to either adapt to the new rules or seek authorization. The rule mandates that settlements must occur through a foreign exchange transaction or a non-resident real-denominated account in Brazil. While the regulation does not ban cryptocurrency trading, it effectively closes a payment channel previously utilized by companies such as Wise, Nomad, and Braza Bank.