Brazil's central bank governor: The rapid growth of stablecoins is related to tax evasion and money laundering, and personal holdings may be banned

According to Bitcoin.com, Gabriel Galipolo, the new governor of Brazil's central bank, said that more than 90% of cryptocurrency use in the country is stablecoins transactions. The central bank's analysis found that stablecoins are mainly used for cross-border transfers, and there are risks of tax evasion and money laundering.
Galipolo pointed out that the central bank initially believed that stablecoins were popular because they provided citizens with an easy way to hold their dollars. But after further research, it was found that a large number of stablecoin transactions were related to cross-border shopping, and the transaction methods were opaque and could be used to evade taxes or launder money. He also criticized the pursuit of privacy by some citizens, which he believes is often related to illegal activities.
Galipolo revealed that the Brazilian central bank had proposed new regulations in December to link stablecoins to foreign currency regulation, or to ban individuals from owning stablecoins. The regulation, if eventually passed, would limit Brazilian customer engagement in decentralized finance (DeFi) activities, as most DeFi platforms require users to manage their own funds.