Brazil’s central bank president Roberto Campos Neto said the country is preparing to introduce regulations on stablecoins and asset tokenization in 2025, according to a video statement recorded for market intelligence firm Uqbal. Announced. The move is part of the government’s broader efforts to address the growing importance of digital assets in Brazil’s financial ecosystem.
A stablecoin is a digital currency that is tied to a real-world asset, such as the US dollar, and provides relative stability compared to more volatile cryptocurrencies like Bitcoin. The central bank chief pointed to the growing popularity of stablecoins and tokenized assets in Brazil and emphasized the need for regulation. According to Campos Neto, demand for stablecoins is also increasing due to their association with tax evasion and other illegal activities.
According to Reuters, Campos Neto has been vocal about his concerns about the unregulated use of stablecoins. In an earlier statement, he stressed that these digital currencies are often used to circumvent the traditional financial system, making them attractive to those looking to launder money or evade taxes. The planned regulatory framework aims to reduce these risks while fostering innovation within Brazil’s financial sector.
Read more: The state of US stablecoins: Leverage ecosystem monitoring to build trust
Further regulation of asset tokenization (transforming real-world assets such as stocks, bonds, and real estate into digital tokens) is also seen as a key priority. Campos Neto said the central bank sees tokenization as an important development for financial markets, as it allows assets to be traded more efficiently and securely on digital platforms. Future regulations are expected to provide a clear legal structure for these emerging technologies, facilitating growth while preventing potential abuse.
Brazil’s move to regulate the digital asset sector reflects global trends as governments around the world grapple with how to integrate cryptocurrencies into existing financial systems. The central bank governor’s comments underscore the country’s desire to strike a balance between fostering innovation and ensuring compliance with financial regulations.
Source: Reuters
