The International Monetary Fund (IMF) has indicated that Brazil's digital asset sector, particularly dollar-pegged stablecoins, necessitates enhanced regulatory oversight from the government. Since 2017, cross-border cryptocurrency transfers in Brazil have been increasing at a rate that surpasses traditional capital flows. Notably, the demand for stablecoins has proven to be two to three times more sensitive to global shocks compared to portfolio and direct investments, posing risks to financial stability.
While the Central Bank of Brazil already oversees crypto service providers, the IMF emphasizes the need to address gaps in the protection of client assets, the regulations governing fiat-backed token issuance, and measures against money laundering.