Brazil’s central bank has banned fintech and payment provider cross border services from using stablecoins or crypto to settle with overseas counterparties. Resolution BCB 561, published last Thursday and effective from October 2026, states that settlement between an eFX provider and its overseas counterparty must occur exclusively through traditional FX operations or non-resident BRL accounts. The eFX framework governs how payment institutions, e-money issuers and acquirers provide cross border payment services.

However, licensed virtual asset service providers (VASPs) can still use stablecoins for international payments under a separate framework that took full effect today….