Surprising Cryptocurrency Ban News from Brazil, Which Approved the World’s First Solana ETF!

Brazil, which had been taking positive steps regarding Bitcoin (BTC) and cryptocurrencies, has now delivered negative news.

Even Brazil, which approved the first Solana (SOL) ETFs, has banned the use of cryptocurrencies on its official cross-border payment network.

The Central Bank of Brazil (BCB) announced in a statement that the use of cryptocurrencies in international payments is prohibited.

With this ban, the Brazilian central bank has tightened its control over cryptocurrency fund flows.

According to the decision, regulated electronic currency (eFX) providers will now only be required to use traditional foreign exchange transactions or non-resident Brazilian real-denominated accounts for international transfers. They will not be able to use crypto assets for cross-border transfers and transactions.

It was stated that this measure does not aim at a general ban on cryptocurrencies, but rather at preventing the entry of crypto assets such as stablecoins into the payment system in order to increase the efficiency of currency regulation.

The statement noted that 90% of cross-border remittances are linked to stablecoins, increasing the risk of tax evasion and money laundering.

The central bank also stated that stablecoins issued abroad without oversight could weaken the country’s monetary sovereignty, signaling that it may remove them from the domestic market or impose stricter restrictions in the future.

*This is not investment advice.

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