The Central Bank of Brazil Considers Rolling Back Proposal on Self-Custody of Stablecoins
In a recent public hearing, the Central Bank of Brazil acknowledged that a proposal to make self-custody of stablecoins illegal in the country could be withdrawn under certain conditions. Renato Kiyotaka Uema, the deputy head of the Financial System Regulation Department, explained that the initial provisions were intended to increase transparency in stablecoin transactions by restricting them to regulated exchanges. However, he emphasized that the institution is open to revisiting these changes if a viable technical solution can address concerns about transaction opacity.
During the public consultation, Kiyotaka stated, “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.” This indicates a willingness on the part of the Central Bank to consider alternative approaches that balance regulatory oversight with market efficiency.
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