Analyst: Brazil's self-regulatory stablecoin ban may push users towards decentralized platforms

According to Cointelegraph, the Central Bank of Brazil officially proposed a ban on stablecoin transactions, such as self-custodial wallet transactions of Tether's USDT, on November 29. As the Brazilian central bank is expected to complete public consultations on the potential ban by February next year, some executives have already assessed the potential impact of this ban on local markets.

Carol Souza, co-founder of Area Bitcoin school believes that the proposal from Brazil's central bank could likely become reality in 2025 because it seems to be preparing regulations to prevent individuals from conducting P2P stablecoin transactions.

However, Lucien Bourdon, a bitcoin analyst at Trezor said that even if cryptocurrency adoption slows down, existing users will find ways for free trading of cryptocurrencies. "If it really passes through we expect users would turn towards decentralized platforms or P2P solutions."