The post Brazil Sees Crypto Boom, with 90% Flow in Stablecoins appeared on BitcoinEthereumNews.com.

Brazil sees a surge in stablecoins transactions, raising regulatory concerns. Officials explore Pix expansion and Drex’s role in digital finance evolution. Brazil is experiencing a rapid increase in cryptocurrency usage, with 90% of transactions linked to stablecoins, according to Gabriel Galipolo, president of the Central Bank of Brazil. During his address at the Bank for International Settlements in Mexico City, Galipolo discussed how stablecoins as payment tools are growing in prominence. His remarks stressed the regulatory difficulties derived from stablecoin popularity due to taxation and money laundering challenges. Galipolo stated during his presentation that Brazil’s Drex initiative does not operate as a central bank digital currency (CBDC). This infrastructure system operates as an improvement mechanism for credit accessibility through asset-based collateral. The wholesale settlement layer of the system will operate on distributed ledger technology (DLT) yet retail users will connect through bank-issued tokenized deposits. The central bank of Brazil notified the public that Drex underwent operational testing in October 2024. The main examination objective involved testing integration capabilities with both tokenization systems and the decentralized finance model (DeFi). This venture intends to decrease lending expenses by expanding local credit market assurance use. Brazil Seeks Stronger Monitoring of Stablecoins Transactions Galipolo stated in his presentation that Brazilian people mainly utilize stablecoins to conduct overseas acquisitions. He noted the increasing trend challenged Brazilian tax enforcement and made it more difficult to apply anti-money laundering measures. Transactions that take place outside standard financial structures prevent regulators from obtaining clear monitoring of the activities. The instant payment system Pix which Brazil promotes highly was also discussed by Galipolo. Pix payment system should be integrated with worldwide instant payment systems to expand its capabilities according to his recommendation. The integration of instant payment networks between American territories would deliver faster quicker and more efficient cross-border…

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Filed under: News - @ February 8, 2025 11:19 am