Influenced by the United States' Changing Crypto Regulatory Landscape, Brazil is Considering Issuing Its Own Stablecoin

This article explores Itaú Unibanco's plan to launch a proprietary stablecoin, potentially extending its services to more than 55 million customers.

Brazil's largest bank, Itaú Unibanco, is exploring the possibility of launching its own stablecoin, potentially extending its services to more than 55 million customers. The bank is currently observing other financial institutions that have already adopted these stable crypto assets.

This move by the South American nation follows the United States’ changing crypto regulatory landscape, which has seen the Trump administration give a specific focus on stablecoin regulation and growth.

Largest Bank in Brazil Issues Stablecoin: What To Know?

As reported by a local news outlet, the largest Brazilian bank, Itaú Unibanco, is planning to launch an in-house stablecoin. This move comes amid the increasing interest in stablecoins as an alternative to the highly volatile cryptocurrencies.

The bank’s digital asset head, Guto Antunes, confirmed that Itaú Unibanco is open to exploring the possibility of creating a stablecoin pegged to the Brazilian real (BRL). The bank is currently examining the potential benefits and feasibility of these digital assets for their clients.

"We are always open to understanding for our client whether it makes sense to have a stablecoin, even one in reals, within Itaú," said Antunes.

The US government has been undergoing a significant regulatory overhaul under President Trump, with the restructuring of the US Securities and Exchange Commission (SEC) seeing a major shift in the regulatory landscape.

This has also led to the dismissal of multiple crypto lawsuits, showcasing the Trump administration's focus on streamlining regulations.

Furthermore, the Trump government has given a specific attention to stablecoin regulation and growth. Recently, the US passed the STABLE Act, introducing exclusive guidelines for USD-pegged digital assets like Tether (USDT) and Circle's USD Coin (USDC).

These developments have implications for Brazil, which is considering issuing its own stablecoin. The move by the largest bank in Brazil is a response to the broader trends in the global financial markets.

As the world's largest economy, the US is at the forefront of this technological innovation, and its policies are closely watched by other nations.

The Brazilian bank’s proposal to issue a stablecoin is primarily driven by the US’s progressive stance on digital assets.

Antunes elaborated that the bank has been following America’s stablecoin developments with interest and is open to exploring the possibility in the future.

"Of course, it is always on the agenda. The issue of stablecoins has always been on Itaú’s radar. We cannot ignore the power that blockchain has to settle transactions atomically."

Earlier this year, Brazil's financial policy body, the National Monetary Council (CMN), banned pension funds from investing in crypto assets.

The organization, which is part of the Brazilian central bank, cited concerns about crypto assets' inherent risks as the key reason for the decision.

The move came after a period of deliberation, aiming to protect the savings of workers and retirees in the long term.

In other news, Cardano has been expanding its footprint in Brazil, forging a partnership with SERPRO, a Brazilian government information technology company, to introduce Cardano's blockchain technology for use in public services.