Brazil bans self-custodial stablecoins to promote decentralization

as more Brazilian citizens hedge against the risk of the Brazilian real's plunge by buying stablecoins pegged to the US dollar, the use of stablecoins is also increasing. The Brazilian central bank is expected to complete a public consultation on a potential ban in February next year, and several executives have evaluated the potential impact of the ban on the local market.

Carol Soares, co-founder of Regional Bitcoin School, pointed out that Brazilian cryptocurrency trading platforms have been implementing KYC measures since 2019, while P2P transactions are still not subject to such restrictions.