Central Bank of Brazil Proposes Holding Stablecoin Remittances For Screening Purposes

The Central Bank of Brazil has recently proposed a new measure that would change the landscape of the regulated use of stablecoins for cross-border payments and remittances.

The institution introduced a notice of rulemaking to implement a 24-hour hold window for remittances and cross-border payments sent using stablecoins and allow virtual asset service providers (VASPs) to complete due diligence procedures on these transactions.

The hold period, applied to stablecoin transactions of over $10,000 in value, would be used by exchanges and service providers to conduct risk analysis of the movements and verify their compatibility with the risk profile of…