Coinbase Urges Brazil's Central Bank Not to Ban Stablecoins in Personal Wallets
Date: 2025-03-26 Author: Gabriel Deangelo Categories: BUSINESS
Brazil's Central Bank is considering banning stablecoins in personal crypto wallets such as MetaMask. According to the regulator, such measures will help combat tax evasion and money laundering more effectively, since self-storage makes it difficult to track transactions.
However, the initiative has sparked a wave of criticism in the crypto community. One of the main opponents of the ban was Coinbase, noting that the proposed restrictions could undermine the legal use of stablecoins, which are widely used for cross-border transfers, settlements, and salary payments. In addition, millions of users use them for everyday payments.
Coinbase emphasizes that stablecoins play a key role in the infrastructure of decentralized finance (DeFi), and excessive control by the authorities can slow down the development of financial technologies in Brazil. In addition, restrictions on the use of personal wallets will lead to the concentration of user assets on centralized platforms, which will increase the risks of hacks and thefts.
Tom Duff Gordon, a representative of Coinbase, believes that instead of a complete ban, the regulator should focus on improving control mechanisms. He recalled that all transactions in the blockchain are transparent and can be verified by any user. In this regard, special attention should be paid to strengthening KYC (know your customer) and AML (anti-money laundering) procedures, as well as introducing more accurate tools for monitoring and analyzing data on the blockchain.
According to Gordon, this approach will help limit illegal activities without disrupting citizens' access to digital assets. He also warned that taking tough measures could damage Brazil's image as a country friendly to cryptocurrency innovation.
According to research from the Bitso platform, USDC and USDT stablecoins will account for 39% of all exchange purchases in Latin America in 2024, highlighting the high demand for such instruments in the region.
