Brazilian Central Bank President: The rapid growth of stablecoins is related to tax evasion and money laundering, and may prohibit individuals from holding them

ChainCatcher news, according to Bitcoin.com, the new president of the Central Bank of Brazil, Gabriel Galipolo, stated that over 90% of cryptocurrency usage in the country involves stablecoin transactions. The central bank's analysis found that stablecoins are primarily used for cross-border payments and pose risks of tax evasion and money laundering.

Galipolo pointed out that the central bank initially believed the popularity of stablecoins was due to their convenience for the public to hold dollars. However, after further investigation, it was found that a significant amount of stablecoin transactions were related to cross-border shopping, and the transaction methods were opaque, potentially being used to evade taxes or for money laundering activities. He also criticized some citizens' pursuit of privacy, suggesting that this is often associated with illegal activities.

Galipolo revealed that the Central Bank of Brazil proposed new regulations last December, aiming to link the regulation of stablecoins to foreign currencies, which may prohibit individuals from holding stablecoins. If this regulation is ultimately passed, it will restrict Brazilian users from participating in decentralized finance (DeFi) activities, as most DeFi platforms require users to manage their own funds.