The Brazilian central bank believes that stablecoins should be classified as electronic monetary instruments

According to Bitcoin.com, the Central Bank of Brazil stated at a congressional hearing that stablecoins have the attributes of payment tools and should be classified as electronic money instruments rather than general digital assets, thus falling under a stricter regulatory framework.

The Brazilian Association of Crypto Economy opposed this, arguing that such classification could lead to regulatory conflicts, hinder the application of stablecoins in institutional and retail markets, and divert Brazil from international regulatory trends. Meanwhile, the Central Bank of Brazil has recently increased regulatory requirements for virtual asset service providers, which may put pressure on the operations of small and medium-sized crypto institutions.