Brazil's central bank has imposed new rules that effectively ban stablecoin use in electronic foreign exchange (eFX) services. Starting May 2026, regulated eFX providers and their foreign partners can only conduct transactions through traditional foreign exchange accounts or non-resident Brazilian real accounts. This means USDT, USDC, and even Bitcoin can no longer be used as settlement rails for cross-border remittances—the path of converting reais to dollars and then transferring via blockchain is officially closed.
Scope: Payment Rails Blocked, Personal Trading Unaffected
This is not a blanket ban on cryptocurrency trading. Since February 2024, Brazilian investors have been allowed to buy, sell, store, and transfer crypto assets through authorized platforms. Decision No. 561 targets only the payment infrastructure in the eFX sector—stablecoins can no longer serve as a legal payment channel. In other words, individuals can still hold and trade crypto, but eFX firms cannot use stablecoins as remittance tools.
Companies Hit: Wise, Nomad, Braza Bank Take the Blow
Global cross-border payment giants Wise and Nomad, along with local bank Braza Bank, are directly affected. Nomad had been using the Ripple blockchain for transfers between Brazil and the United States and had already enabled stablecoin settlements. Braza Bank even issued a real-backed stablecoin on the XRP Ledger. Under the new rules, these companies must halt stablecoin-related payment services and revert to traditional forex channels.
Brazil's crypto market generates a monthly trading volume between $6 billion and $8 billion, with roughly 90% of that being stablecoin transactions, serving 25 million local crypto users. In 2025, Brazil climbed to fifth place globally in crypto adoption, largely driven by stablecoins' rapid uptake for domestic payments. The new regulation directly cuts off the biggest application scenario of that growth engine.
New eFX Thresholds: Licensing and Fund Segregation
Under the new regulation, only institutions authorized by the Central Bank of Brazil—including banks, Caixa Econômica Federal, securities and forex brokers, and licensed payment institutions—may offer eFX services. Firms currently lacking authorization must apply by May 31, 2027 to continue operations. Additionally, customer funds must be held separately from company funds in bank accounts, with detailed monthly reporting required.
The regulation also leaves room for eFX expansion: providers can facilitate transfers tied to domestic and international financial or capital market investments, provided each transaction does not exceed $10,000. This cap also applies to digital payment solutions. The move is widely seen as the second phase of a broader financial regulatory wave. In March, industry associations representing more than 850 companies resisted expanding the IOF financial transaction tax to cover stablecoin transactions, but failed.
In summary, Brazilian regulators continue to allow cryptocurrencies to exist within the country's financial system, but have drawn a clear line: crypto assets cannot serve as the payment infrastructure for eFX transactions. The short-term impact is already visible: stablecoin-dependent cross-border payment players must either adjust their business models or exit the Brazilian market.