Brazil’s Central Bank opens to change its proposal to establish a controversial stubcoin ban

Eduardo Nogueira Riverato, a Brazilian Central Bank official, said the stupid proposal was not set on stone and there was room for flexibility in how citizens could implement withdrawals in their own obligation wallets.

Brazil’s central bank may change the independence of banning draft stablecoin

A senior Brazilian Central Bank official issued a positive statement regarding the change in the proposal that would prohibit Brazilians from withdrawing stable wallets.

In a statement made during the tokenization event in Rio de Janeiro, Eduardo Nogueira Ribert, head of the central bank’s Prudential Exchange Regulations division, explained that the final rules could be significantly different from those proposed in the public consultation.

Read more: Brazilian Group stub coin with foreign currency in new regulations draft

He said:

There is room for flexibility as service providers recognize that they can monitor the quality of their independent clients. The key is to keep the institution accountable for knowing clients who use independence.

Furthermore, he said the proposals revealed as part of the public consultations are mostly different from those who presented the implemented ruleset. “In this consultation on virtual assets in the forex market, having a more general view of market participants was more exploratory,” he explained.

The statement comes as industry officials have harshly criticised the implications of the rules. This will affect Brazilian citizens using stubcoins as a proxy for the dollar without the involvement of man-in-the-middle. Binance and other exchanges have rejected the rule as is, emphasizing that the scale can be replaced with regular reports of transactions made by users, avoiding a complete ban.

This, combined with partnerships with companies analyzing blockchain data, allows banks to decide which users hold without banning Stablecoin withdrawal.

A complete ban on the withdrawal of stubcoin could ultimately criminalize the use of Brazil’s decentralized financial platforms. This is because it can generate profits from these benefits, which are the unintended consequences of measures to treat stove coins as foreign currency.

Read more: Crypto Exchange Opposes Self-Law Prohibition of Stablecoin in Brazil