In November 2025, a Boston University research paper highlighted Brazil’s fast-evolving financial landscape. The study examined emerging monetary infrastructure and technology. Digital assets and fintech such as XRP and Ripple are increasingly shaping Brazil’s foreign-exchange dynamics. These developments may affect economic stability and capital flows.
The Rise of ForexTech in Brazil
The Boston University paper defines ForexTech as fintech enabling easier access to foreign currencies and digital assets. Retail and corporate users now access U.S. dollars, stablecoins, and other foreign instruments.
This innovation increases financial inclusion but also introduces systemic risks. Capital outflows through ForexTech can challenge monetary control and weaken domestic currency strength.
Between 2018 and 2024, Brazil’s largest ForexTech firms increased their share of the interbank FX market from 1% to 7.1%. These firms reportedly moved nearly US$30 billion annually through digital platforms. Such volumes are significant relative to traditional banks’ operations.
A Boston University paper just named Ripple and $XRP alongside Brazil’s evolving foreign exchange system
Not influencers. Not blogs. Academic research on monetary infrastructure
Brazilian fintechs are using $XRP for real-world settlement
You watching the chart or the rails? pic.twitter.com/W7s9MZS4Ce
— X Finance Bull (@Xfinancebull) December 9, 2025
Crypto Assets and Brazil’s 2024 FX Volatility
The study links crypto adoption to Brazil’s 2024 foreign-exchange turbulence. Net financial outflows surged to US$95 billion, creating a US$19 billion deficit in the FX market. Crypto-related capital outflows alone reached US$17 billion. Around 9.2 million Brazilians held digital assets, totaling US$8.5 billion in holdings by December 2024.
The researchers introduced the term “digital sin” for this reliance on digital channels. It mirrors “original sin,” which describes structural foreign-currency dependence. Digital sin emphasizes the risks from technology-enabled outflows rather than debt.
XRP’s Real-World Role in Brazilian Finance
The study noted Ripple and XRP as part of Brazil’s evolving foreign-exchange system. XRP Ledger (XRPL) is now used for real-world settlement by fintechs. For example, VERT Capital tokenized public-pension receivables on XRPL, managing around BRL 200 million (~US$40 million).
Mercado Bitcoin announced plans to tokenize over US$200 million in regulated financial assets on XRPL. This includes fixed-income and equity instruments. Meanwhile, Braza Group launched BBRL, a real-denominated stablecoin on XRPL, to simplify business and consumer transactions.
Innovation Meets Regulatory Challenges
XRPL adoption shows how crypto infrastructure is maturing in Brazil. Yet, it creates lightly regulated conduits for foreign-currency movement. Such channels complicate monetary policy and oversight. Regulators face the challenge of balancing innovation with financial stability.
Implications for Brazil and Emerging Markets
Brazil must reconcile fintech modernization with stable currency control. ForexTech growth could increase unregulated capital flight risks. Adaptive policies and robust oversight are essential to manage systemic vulnerabilities.
Academic recognition, as reported by X Finance Bull, highlights Ripple and XRP’s real impact on Brazil’s financial system. The integration of XRPL is no longer experimental—it is becoming structural. Emerging markets may face similar tensions as digital finance continues to expand.
The BU study underscores a pivotal point: crypto-enabled finance can either strengthen Brazil’s fintech leadership or pressure its currency and capital markets.