cryptojournalist
New Proposal from Brazil’s Central Bank
Brazil’s central bank is considering a new rule that would block stablecoin withdrawals to self-custodial wallets like MetaMask. This proposal was announced on Nov. 29 and is still up for public review until February 28, 2025.
Why the Change?
The new rule aims to tighten Brazil’s control over stablecoin transactions, especially as the country’s currency, the Brazilian real, has been losing value against the US dollar. Many Brazilians are turning to stablecoins like Tether (USDT) to protect their savings from the real’s decline.
The Issue with Self-Custodial Wallets
Self-custodial wallets let users manage their own crypto without relying on exchanges, offering more control but also less oversight. Brazil’s central bank wants to regulate these wallets to improve transparency and reduce potential risks in the crypto market.
Brazil’s Role in the Crypto World
Brazil is one of the largest markets for stablecoins globally, making up nearly 60% of the country’s total crypto transactions. This move comes as the real has dropped 23% in value against the dollar this year.
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