Brazilian Central Bank May Withdraw Provisions Banning Stablecoin Self-Custody

The Central Bank of Brazil acknowledged that a proposal making self-custody of stablecoins illegal in the country might be withdrawn if certain conditions are met. In a public hearing, the deputy head of the Financial System Regulation Department, Renato Kiyotaka Uema, said that these provisions were put in place to bring stablecoin transactions to light, allowing them only between regulated exchanges. Nonetheless, he stressed that if there were a technical solution to combat this opacity, the institution could roll back these proposed changes. “This is a public consultation, so if there are suggestions that mitigate these risks, the technical area will act to interfere as little as possible with the market’s agility,” Kiyotaka assessed.