Stablecoins account for over 90% of cryptocurrency transactions in Brazil! Central Bank Governor: Regulatory challenges are key

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The President of the Central Bank of Brazil, Gabriel Galipolo, recently revealed that 90% of cryptocurrency transactions in the country are related to Stable Coins, indicating a significant rise in demand within the Brazilian financial system. However, the widespread use of Stable Coins also brings regulatory challenges, especially in terms of taxation and anti-Money Laundering.

(Brazil may implement a ban on self-custody of Stable Coins to strengthen the regulation of centralized exchanges)

Stable Coin dominates Brazil's cryptocurrency transactions

Reuters reported that Gabriel Galipolo, the Central Bank Governor of Brazil, recently stated at the BIS meeting in Mexico City that 90% of the country's cryptocurrency market transactions are related to Stable Coins, demonstrating the importance of such digital assets in the country's payment system.

Over the past three years, the usage of digital assets in Brazil has risen significantly, while Stable Coins continue to be widely adopted in the payment system.

Additionally, the widespread use of Stable Coins has brought regulatory and supervisory challenges, especially in the areas of taxation and anti-Money Laundering.

In November last year, the Central Bank just proposed to ban the transfer of Stable Coins such as USDT to self-custody wallets such as MetaMask, indicating a tightening of encryption regulation in the country.

Clarification: Drex is not CBDC

In addition, Galipolo also clarified that the Drex digital currency project being developed by the Central Bank of Brazil is not a central bank digital currency (CBDC) (. He explained that Drex aims to serve as an infrastructure project to improve loan accessibility through collateralized assets.

The Drex project plans to settle interbank wholesale transactions using distributed ledger technology )DLT(, and the access of traders will be based on tokenized bank deposits.

)Brazil is also crazy about Bitcoin reserves: proposing a reserve of 16.6 billion US dollars as a digital currency coin Drex guaranteed by the Central Bank (

In October last year, the Central Bank of Brazil announced that it is testing the possibility of integrating Drex, tokenization, and decentralized finance (DeFi) )DeFi(, and evaluating its interaction with other networks.

Drex project leader Fábio Araújo previously described Drex as the country's real-time gross settlement system )Sistema de Transferência de Reservas, STR('s 2.0 version:

Drex is expected to replace Brazil's current STR system, but further details need to be confirmed before it can be officially launched.

Brazil went crazy for Cryptocurrency, rising to become the world's seventh-largest market last year

Kaiko Research's report last year pointed out that Cryptocurrency activity in Brazil grew rapidly last year, with the local legal coin black gold )BRL( denominated Cryptocurrency trading volume increasing by 30% compared to the same period last year, far outpacing the volume of USD transactions.

)Too crazy Cryptocurrency! Brazil requests overseas exchanges to provide user information: to eliminate illegal behavior and prevent tax evasion(

Blockchain analysis company Chainalysis' report in October last year also showed that Brazil's cryptocurrency activity is second only to Argentina. From July 2023 to June 2024, Brazil's cryptocurrency deposits totaled 90 billion US dollars. Among them, Stable Coin transactions accounted for 59.8%.

As the importance of Stable Coin continues to rise in Brazil and globally, how regulatory agencies respond to the challenges it brings will also be a focus of attention in the future.

This article Stable Coin accounts for over 90% of Brazil's Cryptocurrency transactions! Central Bank Governor: Regulatory challenges are key first appeared on Chain News ABMedia.

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KingMunnavip
· 02-08 05:27
follow back bro
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