The growing use of US dollar-backed stablecoins for cross-border payments is adding volatility to Brazil’s capital flows, according to Central Bank Deputy Governor, Renato Gomes, Reuters reported.
Speaking at a conference hosted by OMFIF in London on May 20, Gomes said these digital assets allow users to bypass traditional currency conversion processes.
Brazil’s Central Bank estimates that around 90% of domestic crypto flows are tied to stablecoins, whose usage has expanded significantly over the past few years.
“They offer a bypass instance,” Gomes said. “You can get the stablecoins, and when you get to the United States or anywhere else, you can cash out the stablecoin and essentially use an account in dollars without all the usual regulation.”
He added that stablecoins are being “heavily used” for remittances, noting that some ATMs in the United States now enable withdrawals directly from stablecoin wallets.
“Capital flows become more volatile,” he said, “essentially because almost anyone can use stablecoins to send money in and out of the country.”
Gomes also raised concerns about oversight, pointing out that the largest issuer of real-backed stablecoins is based in Switzerland. “We don't have reach on these issuers,” he said, calling for stronger international regulatory cooperation.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
PIX faces US scrutiny as Brazil embraces system
Brazil’s instant payment platform PIX has become the country’s dominant payment method, processing about $7 trillion in transactions last year, while drawing attention ... more
Brazil’s Itaú holds profit outlook
Itaú Unibanco reported first-quarter net income of BRL12.28bn ($2.49bn), broadly in line with market expectations, while maintaining its guidance for 2026 and signalling ... more
Brazil eyes new credit push
Brazil’s government is studying new lending measures aimed at consumers outside the scope of the Desenrola debt renegotiation programme, Treasury Secretary Rogério Ceron ... more