Itaú Unibanco, the largest bank in Brazil with over 55 million customers, is considering launching its own stablecoin. This decision comes as the bank sees the potential of stablecoins in enabling atomic transactions that minimize fraud risks.
Guto Antunes, the bank’s digital assets head, revealed this development at an event in São Paulo, emphasizing the importance of stablecoins for secure and irreversible transactions. The bank is taking a cautious approach as it awaits regulatory clarity from Brazil’s Public Consultation No. 111, which could impact the use of stablecoins in the country.
The interest in stablecoins has been further fueled by the US government’s shift in stance towards central bank digital currencies, favoring private stablecoins like the ones Itaú is considering. This policy change has caught the attention of major financial institutions globally.
Itaú has always been interested in exploring stablecoins due to the benefits they offer, such as faster and more efficient transactions without the need for intermediaries like banks. These digital assets combine the stability of traditional currencies with the advantages of blockchain technology.
However, the regulatory landscape in Brazil is crucial for the success of Itaú’s stablecoin initiative. Public Consultation No. 111 aims to increase oversight of companies providing virtual asset services and could restrict certain aspects of stablecoin transfers, impacting how these assets are used in the country.
Despite these challenges, stablecoins have gained significant traction in Brazil, with millions of Brazilians engaging in cryptocurrency transactions worth billions of dollars. Stablecoins have played a dominant role in these transactions, underscoring their importance in the country’s evolving financial landscape.
In the US, stablecoins like USDT and USDC have established themselves as key players in the market, with market values surpassing billions of dollars. The growing adoption of stablecoins by institutional investors and the entry of financial entities like Fidelity into the space further highlight the long-term viability of these digital assets.
As Itaú navigates the complexities of launching a stablecoin, the outcome could have far-reaching implications for financial inclusion in Brazil. The bank’s success in bringing a stablecoin to market and the regulatory environment it operates in will shape the future of digital assets in the country and potentially across Latin America.
Overall, the exploration of a stablecoin by Brazil’s leading bank showcases the evolving landscape of digital assets and the importance of regulatory clarity in enabling innovation in the financial sector. Itaú’s strategic approach to this initiative underscores the potential for stablecoins to revolutionize the way money moves in Brazil and beyond.