The head of the central bank of Brazil, Gabriel Galipolo, recently highlighted A significant increase in the adoption of cryptocurrencies across the country. Speaking during a Bank for International Settlements in Mexico City, Galipolo noted that over the past two to three years, the volume of cryptographic transactions had increased considerably.
Interestingly, it estimated that around 90% of this activity is linked to stabbed – criticisms designed to maintain stable value by being fixed to real assets such as the US dollar.
Unlike more volatile digital currencies, these stabbed are increasingly used for daily purchases and cross -border purchases, explained Galipolo.
Stablecoin Flow Surge crypto: there is a socket
Although the rise in cryptocurrency transactions in Brazil may seem like a new positive, the Central Bank chief has raised concerns about the challenges that this rapid adoption presents to regulators.
Galipolo stressed that the increase in the use of stabbed often involves a certain degree of opacity, in particular with regard to taxation and money laundering. With most transactions related to retail activities and international purchases, surveillance and application become more complex.
So far, regulators seem to have been faced with the difficult task of maintaining financial integrity while supporting innovation and growing demand for digital payment options.
To meet these challenges and improve the country’s financial infrastructure, Galipolo underlined the Drex initiative in Brazil. Although often called Central Bank digital currency, DREX is described as a framework to facilitate credit supported by guaranteed assets, according to Galipolo.
Galipolo explained that the objective of DREX is to reduce the cost of the loan and to extend the use of guaranteed funding, the areas where Brazil has traditionally fought.
The platform uses the technology of the large book distributed to manage large interbank transactions, retail participants accessing the system thanks to tokenized bank deposits. This approach, as revealed, aims to improve the efficiency of the loan market, reduce costs and increase overall access to credit.
Another solution introduced
In addition, Galipolo highlighted the Pix potential, the Brazilian instant payment system, to extend its influence beyond national borders. As one of the most adopted real-time payment platforms in the world, Pix has already made a brand in Brazil.
Galipolo suggested that the programmability and flexibility of PIX could allow integration with international instant payment networks, creating a more transparent cross -border payment experience.
Such integration would further strengthen the financial connectivity of the region and position Brazil as a leader in digital payment infrastructure.
Meanwhile, the Central Bank of Brazil offered plans to prohibit the withdrawals of stabbed for self-garde portfolios last year. According to reports, this proposal is still open to public consultation until February 28, 2025.
Star image created with Dall-E, tradingView graphic
