At a July 4 congressional hearing, the central bank said stablecoins should fall under stricter electronic money rules, a position opposed by Brazil's crypto industry group over adoption and compliance risks.
Brazil’s central bank told a congressional hearing on July 4 that stablecoins function as payment instruments and should be classified as electronic monetary instruments rather than general digital assets, framing them for a stricter regulatory regime ahead of debate on bill 4308/2024. The position would place the tokens closer to payments oversight than broader crypto regulation. The Brazilian Association of Crypto Economy opposed the proposal, warning it could create regulatory conflicts, curb institutional and retail adoption, and add pressure on smaller crypto firms as virtual asset service provider requirements tighten.