Brazil’s central bank is taking steps to strengthen its oversight of cryptocurrency platforms as the country’s crypto adoption grows. According to Roberto Campos Neto, the governor of the Central Bank of Brazil, the value of crypto imports by Brazilian residents have increased 44.2% in the period between January and August 2023 compared to the same period last year. This equates to a total of 36 billion Brazilian real (around $7.4 billion).
Neto expressed concern that a lot of this money is being used for tax evasion or connected to illicit activities. He also acknowledged that stablecoins have become particularly popular in Brazil, mainly used as payment for goods and services and less as an investment or savings vehicle.
The Central Bank of Brazil has been designated to regulate the crypto sector in the country and develop its own central bank digital currency (CBDC) – a digital version of the Brazilian real. In June, the Bank unveiled a roadmap of events including monthly webinars, and in July, a blockchain developer discovered the CBDC source code would give the government the ability to freeze or even drain accounts at will.