Brazil's central bank president, Gabriel Galipolo, recently spoke at a Bank for International Settlements event in Mexico City, highlighting the surge in cryptocurrency use within the country.
Over the past few years, Brazil has seen a significant increase in crypto transactions, with stablecoins making up approximately 90% of the activity. These digital assets, pegged to stable values like the U.S. dollar, are increasingly being used for everyday purchases and cross-border transactions, unlike their more volatile counterparts.
However, despite the positive growth, Galipolo raised concerns over the challenges of regulating this rapid adoption, especially with stablecoins. The lack of transparency in many of these transactions, particularly regarding taxes and money laundering, complicates regulatory efforts. As more of these transactions occur in retail and international markets, regulators face growing difficulties in enforcing financial oversight.
In response to these challenges, Galipolo pointed to Brazil’s Drex initiative as a potential solution. Though often described as a central bank digital currency, Drex is designed to facilitate credit through collateralized assets. The project aims to lower borrowing costs and improve access to secured financing, areas that have historically been problematic in Brazil. By utilizing distributed ledger technology, Drex will streamline wholesale interbank transactions and enhance efficiency in the lending market.
Galipolo also highlighted the growing success of Pix, Brazil’s real-time payment system. He suggested that Pix’s programmability could allow it to integrate with global instant payment networks, improving cross-border transactions and reinforcing Brazil’s position as a leader in digital payment infrastructure.
Additionally, the Brazilian central bank’s proposal to ban stablecoin withdrawals to self-custody wallets is still under public consultation until February 2025, raising further concerns about regulatory control over the growing crypto market.
A cryptocurrency trader reportedly lost $2.8 million in an hour after purchasing 1.39 million TRUMP tokens, aiming to secure a spot at an exclusive gala dinner with President Donald Trump.
Binance founder Changpeng Zhao has broken his silence about his time behind bars, describing the four months he spent in a U.S. prison as one of the most unsettling and eye-opening periods of his life. Speaking in a recent interview with Rug Radio, Zhao recounted the emotional and psychological toll of incarceration. Lacking U.S. citizenship […]
Israeli trading platform eToro is preparing to go public in the U.S., aiming for a valuation of up to $4 billion as it moves to list shares on the Nasdaq under the ticker “ETOR.”
Coinbase CEO Brian Armstrong is pressing U.S. lawmakers to revive momentum behind the GENIUS Act, a bipartisan bill aimed at introducing federal oversight for stablecoins.