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

BCB Resolution No. 561, published April 30, updates rules for eFX, Brazil’s regulated system for digital international payments, purchases, withdrawals and transfers. The rule takes effect October 1, with adaptation deadlines running into 2027.

Payments between an eFX provider and its foreign counterparty must move through a foreign exchange transaction or a non-resident real-denominated account in Brazil, with cryptocurrencies barred as an option.

A remittance firm cannot take reais from a customer, convert the funds into USDT, USDC or bitcoin and settle the payment abroad…