Brazil restricts stablecoin use in specific cross-border payment rails

The Central Bank of Brazil will prohibit the use of virtual assets, including stablecoins, for settling international payment flows between regulated foreign-exchange (eFX) providers and their overseas counterparties starting Oct. 1. Resolution 561 aims to close regulatory gaps by requiring these settlements to occur through licensed FX transactions or qualifying non-resident real accounts. The rule does not constitute a general ban on stablecoins, as individual international transfers using virtual assets remain permitted under existing frameworks.