Cross-border crypto transfers in Brazil outpace traditional capital flows, the IMF found, urging the central bank to close stablecoin oversight gaps.
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The IMF is pressing Brazil to tighten stablecoin oversight. Cross-border cryptocurrency transactions in the country now outpace conventional capital flows, the fund found. The gap raises the risk of financial contagion during periods of global stress, the IMF said.
The assessment, published this week, documents steady growth in Brazil's crypto market since 2017. Dollar-pegged stablecoins account for a significant share of the activity. The IMF said the speed of cross-border crypto transfers has overtaken traditional international capital movements, a dynamic that makes the system more vulnerable to rapid outflows during downturns.
Brazil's central bank, Banco Central do Brasil, has already taken steps to bring crypto service providers under formal supervision. Resolution BCB No. 561, published this year, targets electronic foreign exchange service providers. The rule requires international settlements to go through authorized foreign exchange channels or non-resident Brazilian real accounts. It explicitly excludes virtual assets from the monitored cross-border payment system.
The framework does not ban cryptocurrency trading or private stablecoin transactions. It draws a line between authorized international settlements and crypto operations handled by exchanges and wallet platforms. Existing electronic foreign exchange operators can keep running while they pursue formal authorization. The deadline for full compliance is May 31, 2027.
The IMF said those rules leave significant gaps. Consumer asset protection and reserve requirements for stablecoin issuers all need strengthening, the fund argued. The recommendations stop short of calling for a ban on stablecoins. Instead, the IMF pushed for clearer issuance protocols and tougher anti-money laundering enforcement.
The data behind the report shows how deeply stablecoins have embedded themselves in Brazil's payments system. Banco Central representatives have previously estimated that stablecoins make up roughly 90% of registered crypto transactions in the country.
That integration is now visible in the way stablecoins interact with Brazil's Pix instant payment network. Oobit, a payment platform backed by Tether, recently linked its service with Pix. The setup lets users deposit Brazilian reais and hold USDT, executing payments through Pix channels. It is a practical merger of the two systems, not a displacement of one by the other.
The push for tighter stablecoin rules in Brazil mirrors a broader global debate. In the U.S., the CLARITY Act has drawn support from Goldman Sachs' CEO as banks push back on stablecoin rewards.
The IMF's recommendations land alongside heightened international scrutiny of Brazil's Pix system. U.S. trade measures cited the payment infrastructure in recent policy reviews. The tariffs imposed so far cover imported goods, not financial services.
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