TechFlow news, on February 10, according to Bitcoin.com, Gabriel Galipolo, the newly appointed governor of Brazil's central bank, stated that over 90% of cryptocurrency usage in the country involves stablecoin transactions. The central bank's analysis found that stablecoins are primarily used for cross-border payments and pose risks of tax evasion and money laundering.
Galipolo noted that the central bank initially believed stablecoins gained popularity because they offered people a convenient way to hold U.S. dollars. However, after deeper investigation, it became evident that a significant volume of stablecoin transactions is linked to cross-border shopping, with transaction methods showing opacity, potentially enabling tax avoidance or money laundering activities. He also criticized some citizens' pursuit of privacy, suggesting it is often associated with illegal activities.
Galipolo revealed that the central bank proposed new regulations in December last year, aiming to tie stablecoin oversight to foreign currency controls, possibly banning individuals from holding stablecoins. If ultimately enacted, this rule would restrict Brazilian users from participating in decentralized finance (DeFi) activities, as most DeFi platforms require users to self-manage their funds.
