Stablecoins account for about 90% of crypto flows in Brazil, says Central Bank president
In February, Gabriel Galípolo said about 90% of crypto asset use in the country is tied to stablecoins, used mainly to pay for purchases abroad. See what that means and how the Central Bank plans to regulate the sector.
Historical reference: March 25, 2025. Published on this site on November 2, 2026. Dates in the text identify the period covered.
In this article
Key points
- On February 6, 2025, Central Bank of Brazil (BCB) president Gabriel Galípolo said about 90% of crypto flows in Brazil are tied to stablecoins.
- According to him, the use is mainly to buy goods and services abroad, which raises questions about oversight, taxation and money laundering.
- Chainalysis calculated that, between July 2023 and June 2024, stablecoins were 59.8% of crypto volume in Brazil, with USDT leading the segment.
- The BCB's public consultation 111 proposes treating stablecoins as foreign exchange and banning transfers to self-custody wallets, a point that divides the market.
São Paulo, March 25, 2025 — Brazil uses crypto assets mainly to move dollars. On February 6, at the Bank for International Settlements (BIS) event in Mexico City, Central Bank president Gabriel Galípolo said crypto use in the country has "grown a lot" over the past two or three years and that about 90% of that flow is tied to stablecoins. The statement was reported by the Reuters news agency.
- Of crypto flows in Brazil tied to stablecoins, according to the BCB president (02/06/2025)
- ~90%
- Stablecoins' share of crypto volume in Brazil, from Jul/2023 to Jun/2024 (Chainalysis)
- 59.8%
- Value in crypto assets received in Brazil in the same period (Chainalysis)
- US$ 90.3 bn
- Brazil's rank in Latin America by value received, just behind Argentina (Chainalysis)
- 2nd
The BCB's 90% measures the share of use or flows tied to stablecoins, in the bank president's assessment. Chainalysis's 59.8% measures the share of transacted volume in a sample of platforms, in a specific period. The concepts and the bases are different, and the numbers cannot be compared directly.
What the BCB president said
According to Reuters, Galípolo said authorities see crypto mainly as a means of payment, which creates oversight and regulatory challenges. He said most of that use is to buy goods and make purchases abroad, and that the use "keeps an opaque view" for taxation and money laundering (free translation of the passage cited by the agency).
The same speech addressed Drex. Galípolo said the project is not essentially a central bank digital currency, but an infrastructure to improve credit using assets pledged as collateral. He also said Pix, Brazil's instant payment system, being programmable, could integrate with international instant payment networks.
Why stablecoins dominate
A stablecoin is a crypto asset that aims to hold the value of a currency, almost always the dollar. USDT, issued by Tether, is the largest; see how USDT works and how its backing is structured. Unlike bitcoin, it does not fluctuate significantly, which makes it useful as a means of payment and as a dollar reserve. There are four recurring reasons for its use in Brazil:
Chainalysis, a blockchain analytics firm, estimated in October 2024 that Brazil received about US$ 90.3 billion in crypto assets between July 2023 and June 2024, just behind Argentina, with stablecoins at 59.8% of volume. In August 2024, Mercado Livre launched a dollar-pegged stablecoin in Brazil, Meli Dólar, according to Cointelegraph: another sign that the product has moved out of the niche.
The regulatory debate
The Central Bank put the subject out for public consultation. Consultations 109 and 110 dealt with how virtual asset service providers (PSAV) will be incorporated, authorized and supervised, with comments accepted until February 7, 2025. Consultation 111, which closed on February 28, deals with foreign exchange and is the most controversial, as the text on the BCB's public consultations shows.
| Topic | What the proposal provides | What the market is discussing |
|---|---|---|
| Minimum capital (CP 109 and 110) | R$ 1 million for intermediaries, R$ 2 million for custodians and R$ 3 million for brokers | A 12-month advance notice period for institutions already authorized, considered long |
| Stablecoin as foreign exchange (CP 111) | Virtual assets denominated in foreign currency become part of the foreign exchange market | Requirement of an additional exchange license, according to ABFintechs |
| Self-custody (CP 111) | Bars the provider from transferring foreign-currency virtual assets to the customer's own wallet | Mercado Bitcoin suggests a US$ 50,000 limit; Anbima defends value limits |
According to Capital Aberto, there is no set date for publication of the final regulation, but it is expected in 2025. The BCB had not released the final text so far, and the rules may change. Until then, the current regime applies: Law 14,478/2022 created the legal framework, and Brazil's Federal Revenue Service (Receita Federal) requires Brazilian brokers to report transactions monthly under Normative Instruction 1,888/2019.
What the importer should watch
- The exchange rule may change. If CP 111 is approved as proposed, international payments with stablecoin would be treated as foreign exchange.
- Self-custody. The ban on transfers to own wallets may affect those who use stablecoin to pay suppliers, because the supplier receives in a wallet it controls. The debate was still open.
- Documentation. Keep the invoice, receipt and transaction hash. In any scenario, traceability of the payment is likely to be required.
- Peg risk. A stablecoin is issued by a private company and is not covered by the FGC (Brazil's deposit guarantee fund).
Frequently asked questions
What share of the Brazilian crypto market do stablecoins hold?
Central Bank president Gabriel Galípolo said on February 6, 2025 that about 90% of crypto flows in the country are tied to stablecoins. Chainalysis, using a different methodology, calculated 59.8% of volume between July 2023 and June 2024. The numbers measure different things.
What do Brazilians use stablecoins for?
According to Galípolo, mainly to buy goods and services abroad. Recurring uses include paying suppliers, holding a dollar reserve and moving funds quickly, at any hour.
Has the Central Bank already regulated stablecoins?
Not as of March 25, 2025. The BCB put the rules for virtual asset providers (consultations 109 and 110) and their role in the foreign exchange market (consultation 111) out for public consultation; the latter proposes banning the transfer of stablecoins to own wallets. The final regulation had not yet been published.
Is a stablecoin guaranteed by the FGC?
No. Virtual assets are not covered by the FGC (Brazil's deposit guarantee fund), and a stablecoin can lose its peg to the dollar, since it is issued by a private company.
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Sources
- Brazil's Galipolo sees surge in crypto use, says 90% of flow tied to stablecoins · Reuters (via The Star), Feb 7, 2025
- Stablecoins account for 90% of crypto use in Brazil — Central bank chief · Cointelegraph, Feb 7, 2025
- Latin America's Search for Economic Stability: The Rise of Stablecoins Amid Volatility · Chainalysis, Oct 9, 2024
- Proibição de autocustódia de stablecoin é ponto polêmico em consulta do BC para regular criptos · Capital Aberto, Mar 24, 2025
- Lei nº 14.478, de 21 de dezembro de 2022 · Presidência da República, Dec 21, 2022
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