Brazil’s primary digital asset trade association, ABcripto, has formally opposed the Central Bank’s proposed regulation that would require stablecoin transfers to be frozen for 24 hours before settlement. This restriction, introduced through a public consultation process, aims to add a delay to stablecoin movements, which are currently nearly instantaneous.
The Central Bank’s intent is to create a supervisory framework for digital assets within Brazil’s financial system, with stablecoins—a type of cryptocurrency pegged to fiat currencies like the US dollar—playing a significant role in the local market. However, ABcripto contends this mandatory holding period is an excessive and indiscriminate measure that imposes operational hurdles on exchanges, payment providers, and users without sufficiently mitigating the risks the policy targets.
According to the trade group, the 24-hour lock would generate liquidity issues and complicate treasury management for compliant firms, disrupt user experience, and delay cross-border settlements. ABcripto’s formal response requests that the Central Bank suspend this proposal, emphasizing that the measure introduces friction across all stablecoin transactions rather than focusing on those with compliance concerns.
This debate highlights a broader regulatory choice facing Brazilian authorities: whether to enforce transfer-level restrictions or adopt more nuanced compliance tools to oversee stablecoins. The Central Bank’s regulatory agenda for 2025 underscores its commitment to strengthen digital asset oversight, with the stablecoin lock proposal representing one potential path forward in shaping Brazil’s crypto market governance.