According to Cointelegraph, the governor of Banco Central do Brasil, Roberto Campos Neto, announced plans to tighten digital asset regulation in response to a significant surge in crypto adoption in the country. During a speech to the parliamentary Finance and Taxation Commission on September 27, Neto reported a 44.2% increase in cryptocurrency imports by Brazilians from January to August 2023, compared to the previous year, totaling about 35.9 billion Brazilian reals ($7.4 billion).

Neto also highlighted the growing popularity of stablecoins, which he said are being used more for payments than investments. He stated that the central bank will respond to these trends by tightening regulation and bringing crypto platforms under its supervision, citing concerns about tax evasion and illicit activities. In June 2023, Brazil's Central Bank was given the primary role in crypto regulation, while token projects qualifying as securities remain under the jurisdiction of the Comissão de Valores Mobiliários (CVM), Brazil's equivalent of the United States Securities and Exchange Commission (SEC).

The Central Bank of Brazil is also developing its own digital currency, Drex. In August, the bank revealed the brand and logo of its central bank digital currency (CBDC). However, Brazilian blockchain developer Pedro Magalhães reportedly discovered functions in the Drex code that would allow a central authority to freeze funds or reduce balances, sparking controversy.