Brazil Proposes Ban on Self-Custody Stablecoins… "Public Consultation in February Next Year"

Following the proposal by the Central Bank of Brazil to ban self-custody stablecoin transactions like Tether (USDT), there is a growing expectation that the stablecoin industry will accelerate its shift towards decentralization.

According to a report by Cointelegraph on the 26th (local time), the Central Bank of Brazil officially proposed a ban on self-custody stablecoin transactions, including Tether, on November 29. The proposal is expected to conclude public consultations by February next year.

Carol Souza, co-founder of Area Bitcoin, stated, "The Central Bank of Brazil's restriction on stablecoins aims to prevent stablecoin transactions from occurring outside Brazilian trading platforms," and predicted, "There is a high possibility that stablecoin bans will also be implemented in personal transactions such as P2P trading in the future."

However, there are opinions that there is no suitable way to restrict personal transactions. Luciano Burdon, a Treasury Analyst, said, "While the government can regulate centralized exchanges, it will be difficult to control P2P transactions and decentralized platforms," and predicted, "Even if the ban is enforced, it is likely to affect only part of the ecosystem. If the law is passed, users will move to decentralized platforms."