the Central Bank aims to remove the ban on stablecoin

The Central Bank of Brazil is considering a major revision of the project that prohibits the withdrawal of stablecoins to self-custody wallets. Eduardo Nogueira Liberato, a key official of the central bank, recently indicated that the current proposal is not final, leaving room for more flexible solutions for Brazilian citizens.

The evolution of the proposal on stablecoin in Brazil

The initial draft, released through a public consultation, provided for a total ban for Brazilian users on transferring stablecoins to personal wallets without intermediaries. However, during an event dedicated to tokenization in Rio de Janeiro, Liberato clarified that the regulation could undergo substantial changes.

“Since service providers can monitor the quality of self-custody users, we see room for flexibility. However, it is crucial that the responsible institution knows well the customers who use self-custody,”

the executive explained.

This approach shows a more open vision than imagined in the first version of the regulation. The goal is to balance financial security and user freedom in managing their own digital assets.

Unlike other rules almost ready for implementation, this consultation on the rules for virtual assets in the foreign exchange market has been described by Liberato as “more exploratory”. The intent is to gather information and better understand the dynamics of the market participants, before establishing a definitive regulatory framework.

This interlocutory phase addresses the concerns of operators and investors, providing room to adapt the measures to the real needs of a rapidly evolving sector.

Criticism from the industry and the role of exchanges

The project has encountered strong resistance from actors in the crypto sector. Platforms like Binance have firmly rejected the ban, emphasizing that the measure risks hitting Brazilian citizens hard who use stablecoin as a proxy for the dollar, bypassing traditional financial intermediaries.

The exchanges insist that instead of a total block, periodic checks on user transactions could be implemented. This solution would allow for maintaining transparency and traceability of operations without compromising the ability to use stablecoin autonomously.

Blockchain analytics: a possible keystone

A central element in the discussions is the use of blockchain analysis tools. These would allow the Central Bank of Brazil to effectively monitor users’ positions and movements, without imposing the obligation to hold stablecoins exclusively on custodial platforms.

Collaborations with companies specialized in blockchain analytics could therefore ensure a high level of control and prevention of money laundering, while safeguarding the freedom to manage digital assets through self-custody.

Potential Impacts of a Total Ban

An extreme restriction, prohibiting any withdrawal of stablecoins to personal wallets, would risk criminalizing the use of decentralized finance (DeFi) platforms. These platforms leverage stablecoins to offer innovative financial products, such as yield generated from interest or staking.

The ban, therefore, could have unintended side effects and weaken a sector that, despite regulatory complexities, is also growing in Brazil. The goal of the Central Bank of Brazil is to treat stablecoins as foreign currency, but a more balanced approach would be needed to avoid stifling innovation.

Towards a flexible and responsible regulatory framework

The dialogue initiated by the Central Bank of Brazil demonstrates the willingness to adopt more flexible and calibrated rules, making institutions accountable but without sacrificing the freedom of digital users. In-depth customer knowledge remains a fundamental pillar, but there is also a focus on coexistence with new technologies.

As a result, the regulation of stablecoins could evolve in a way that allows withdrawals to self-custody, accompanied by advanced monitoring systems and transaction transparency.

Future prospects and importance of consensus

This opening of the central bank represents a positive signal for the crypto market in Brazil. A regulation that manages to balance security and accessibility could stimulate the adoption of digital assets and consolidate investor trust.

Operators in the sector and citizens are therefore called to actively participate in the consultation process, contributing to form a legal framework that respects the needs of innovation and financial protection.