Brazil's central bank is considering a ban on stablecoin transfers to self-custodial wallets, which could spur further decentralization, according to industry experts. As citizens increasingly adopt stablecoins like Tether's USDt to hedge against the depreciating Brazilian real, the proposed restrictions aim to limit these transactions to Brazilian trading platforms. Some executives, including Area Bitcoin's Carol Souza and Trezor's Lucien Bourdon, believe that while enforcing such a ban may be challenging, it could push users toward decentralized platforms and peer-to-peer (P2P) transactions. Similar trends have been observed in countries like Nigeria and China, where regulatory efforts led users to decentralized solutions. Tether CEO Paolo Ardoino emphasized the need for a balanced regulatory approach to protect consumers while fostering innovation as it aims to collaborate with Brazilian regulators amid these proposed changes.

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