Brazil’s central bank has banned electronic foreign exchange providers from using stablecoins or other cryptocurrencies to settle overseas remittances.

The Brazilian ban takes effect on Oct. 1 of this year, with adaptation deadlines running into 2027.

Payments between a foreign exchange provider and its foreign counterpart must move through a foreign exchange transaction or a non-resident real-denominated account in Brazil.

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Cryptocurrencies, including Bitcoin (CRYPTO: $BTC), will be banned from such transactions. 

Going forward, a remittance firm cannot convert foreign funds into stablecoins and settle the payment on a blockchain.

The…