Brazil's central bank says stablecoins should be regulated as electronic money

Brazil's Central Bank has stated that stablecoins should be classified and regulated as electronic money rather than as general cryptocurrencies, Bitcoin.com reported. Fábio Araújo, an advisor at the central bank's Regulation Department (Denor), explained that while assets like Bitcoin (BTC) and Ethereum (ETH) have inherent scarcity and transferability, stablecoins function as payment instruments based on real-world assets (RWA) and should be treated as monetary financial products. In contrast, the Brazilian Crypto Economy Association (Abcripto), which includes members like Binance, Coinbase, and Tether, has opposed this view. The association argues that such a classification would hinder the adoption of stablecoins by institutions and individuals and is inconsistent with international regulatory trends. Meanwhile, Brazil's Central Bank recently announced stricter supervision standards for Virtual Asset Service Providers (VASPs), bringing them in line with regulations for securities firms.