đ¨ Brazil activates âcrypto clampdownâ on remittances with USDT and USDC.
The Central Bank of Brazil (BCB) shook up the financial system of Latin America by restricting the use of stablecoins (such as USDT and USDC) for remittances, international transfers, and the settlement of payments abroad through formal channels.
đ Key points of the measure:
⢠End to fast remittances: The route used by fintechs and users to send capital overseas without the bureaucracy of the traditional banking system is being halted.
⢠Increased oversight: The agency will carry out preventive reviews of cross-border crypto transactions that exceed certain capital thresholds.
⢠Defense of the local currency: The government aims to curb âdigital dollarizationâ and protect the value of the Brazilian real against capital flight.
⢠Spillover effect across the region: Since Brazil is the largest crypto market in South America, the rule raises alarms about possible similar regulations in the rest of Latin America.
It remains to be seen whether users will seek refuge in the P2P market and DEX exchanges, or return to traditional banking.
$USDT $USDC #BCB #CryptoNews
The Central Bank of Brazil (BCB) shook up the financial system of Latin America by restricting the use of stablecoins (such as USDT and USDC) for remittances, international transfers, and the settlement of payments abroad through formal channels.
đ Key points of the measure:
⢠End to fast remittances: The route used by fintechs and users to send capital overseas without the bureaucracy of the traditional banking system is being halted.
⢠Increased oversight: The agency will carry out preventive reviews of cross-border crypto transactions that exceed certain capital thresholds.
⢠Defense of the local currency: The government aims to curb âdigital dollarizationâ and protect the value of the Brazilian real against capital flight.
⢠Spillover effect across the region: Since Brazil is the largest crypto market in South America, the rule raises alarms about possible similar regulations in the rest of Latin America.
It remains to be seen whether users will seek refuge in the P2P market and DEX exchanges, or return to traditional banking.
$USDT $USDC #BCB #CryptoNews
