Brazil Plans to Slow Down Large Stablecoin Transfers

Brazil's central bank is proposing a mandatory 24-hour delay for large stablecoin transfers as part of new measures aimed at improving oversight of digital asset transactions.

Under the proposal, the rule would apply to cross-border transfers and transactions exceeding $10,000. During the 24-hour holding period, digital asset service providers would be required to review the transaction, assess potential risks, and verify whether it aligns with the customer's financial profile.

If the review is completed ahead of schedule and no concerns are identified, the funds could be released before the full 24-hour period expires.

The central bank emphasized that the temporary hold is intended solely as a precautionary measure and does not represent a permanent freeze of customer funds.

If adopted, the new rules could reduce the appeal of using domestic cryptocurrency exchanges for international payments. One of the key advantages of stablecoins has been their ability to settle transactions much faster than traditional bank transfers.

The impact on individual users is expected to be limited, as the proposed threshold of $10,000 is relatively high. Businesses, institutional clients, and companies handling business-to-business payments are likely to be affected much more significantly.

The proposal is particularly relevant given the growing role of stablecoins in the region. According to a report by Digital Chamber, 71% of financial institutions in Latin America already use stablecoins for cross-border payments—the highest adoption rate of any region worldwide.

Industry organizations and other stakeholders can submit feedback on the proposed regulations until July 2.