Brazil's largest bank, Itaú Unibanco, is preparing to launch its own stablecoin! Here are the details.

According to its holdings, Itaú Unibanco, the largest bank in Brazil, is exploring whether to launch its own stablecoin as regulatory discussions evolve and U.S. financial institutions gradually enter the sector.

Brazil’s Largest Bank Itaú Unibanco Designs Its Own Stablecoin

The bank’s decision will depend on regulatory developments in Brazil and the success of stablecoin offerings by US financial institutions.

Itaú’s digital holdings manager Guto Antunes stated that the decision could depend on how American institutions approach the presentation of stablecoins. Antunes referred to the growing momentum behind blockchain-based payment systems at an industry event in São Paulo.

“Itaú has always had stablecoins on its radar. We cannot ignore the power of blockchain to execute transactions atomically,” he stated. Stablecoins continue to be a topic of discussion for now.

The increasing interest in stablecoins came just after the political shift in which U.S. lawmakers rejected a central bank digital currency (CBDC) to promote private stablecoin alternatives in order to maintain the dominance of the dollar.

In Brazil, regulators are conducting a public consultation (Consulta Pública No. 111) focused on how stablecoins can fit into the existing financial system.

Antunes said that the bank expects to see what rules the central bank will set before advancing any internal projects.

Antunes also expressed concerns about the proposed self-custody ban in Brazil’s draft stablecoin regulations. It is worth noting that Brazil prohibits large pension funds from investing in cryptocurrencies.