🧠 Food for thought

Implications, context, and why it matters.

Brazil’s stablecoin market drew a response from the central bank

• Crypto activity in Brazil hit 227 billion reais (US$42.8 billion) in the first half of 2025. USDT made up about two-thirds of that total 1.
• In a technical note to Congress, the central bank warned that stablecoins issued outside its oversight could weaken Brazil’s “monetary sovereignty” 2.
• In November 2025, the central bank released long-awaited rules for virtual asset service providers (VASPs), companies that handle crypto trading, custody, or transfers for customers, but did not finalize them. The package would add anti-money laundering, terrorism financing, and consumer protection duties. It would also add transparency, governance and reporting duties from February 1.

Tough rules favor bigger crypto firms

• Remittance groups and fintechs now face a hard trade-off. They can stop using stablecoins for regulated remittances, or return to slower and pricier banking rails 1.
• Ripple is one example. The crypto payments company is expanding in Brazil. It said it plans to seek a VASP license from the central bank and works with local companies including Braza Bank 3.
• Ripple may also gain from how authorities view its stablecoin. Ripple says RLUSD is backed by dual U.S. regulatory oversight 3. That includes the New York Department of Financial Services (NYDFS), New York state’s financial regulator 3. It also includes the Office of the Comptroller of the Currency (OCC), the federal regulator for national banks 3.
• Clear but strict rules could favor well-funded crypto and payments firms that can absorb compliance costs. Smaller entrants may struggle, which could leave the market more concentrated.