Key Takeaways:
On April 30, the Central Bank of Brazil issued Resolution 561, banning crypto in cross-border payments. Analyst Victor Alfa notes this 2025-reviewed ban forces firms to abandon on-chain efficiency for fiat. Taking effect on October 1, the Central Bank will exclusively require fiat usage for foreign exchange flows.The document stresses that these transactions must be carried out “exclusively: I – through a foreign exchange transaction or movement in a non-resident’s Brazilian real account held in Brazil, with the use of virtual assets being prohibited.”
Nonetheless, the resolution, which comes into effect on October 1, lists “virtual assets” as a special category identifying transactions, meaning the bank recognizes their existence but chooses not to allow their implementation in cross-border operations.
“Innovation in the settlement layer suffers a severe blow. Companies in the sector will be forced to abandon on-chain efficiency and return to the conventional—and often more costly—rails of traditional banking infrastructure,” he assessed.
