LatAm Focus: Is Brazil Waging a Futile War on Stablecoins?

Brazil’s push to regulate stablecoins has sparked concern, especially over a proposal that could ban self-custody wallets.

Critics argue the measure would drive users underground rather than improve oversight. Undermining innovation and pushing DeFi activity into the shadows. Major exchanges like Coinbase and Brazil’s largest bank, Itau, have voiced concerns. With Itau delaying its stablecoin plans pending clear regulation.

Industry experts warn that enforcing such restrictions would be nearly impossible given Brazil’s large crypto market and the technical challenges of tracking user wallets.

Clever Robot News Desk 10^th April 2025