Brazil blocks use of USDT and USDC for international transfers

The Central Bank of Brazil announced the suspension of international transfers using USDT and USDC, affecting the operation of platforms that offer this service.

International payments, remittances, and cross-border payments will be affected by the closure of “a key channel used by fintechs and individual users.

The suspension represents a radical change in the landscape of digital money flows in the region, “in a context where the volume traded with these digital assets represented a substantial part of the local market.” In this sense, fintech companies that used the blockchain network to reduce costs and accelerate these operations now face a scenario of strict compliance.

According to analysts, the decision increases state control over digital operations, in addition to deepening the tension between state regulations and the adoption of decentralized financial tools.

On the one hand, the Central Bank of Brazil (BCB) seeks to protect the real, the local currency, against the rise of digital currencies, and on the other, market players are assessing the impact on competitiveness and innovation in the Brazilian crypto ecosystem.

M.Pino

Source: cripto247

(Reference image source: gustavo nacht on Unsplash)

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