United States investigates Brazil's Pix payment system

The United States Trade Representative (USTR) has launched an investigation into Brazil’s Pix payment system, alleging unfair practices under Section 301 of the Trade Act. The USTR claims the Central Bank of Brazil operates with a conflict of interest by acting as both the regulator and the operator of the system, effectively creating a ‘national champion’ that disadvantages American companies such as Visa, Mastercard, and WhatsApp Pay.

This dispute has escalated into a broader trade conflict, with the U.S. government including Pix as a justification for imposing a 25% tariff on certain Brazilian products. The USTR argues that Brazilian practices regarding digital commerce and electronic payment services are ‘unreasonable’ and harmful to U.S. exporters.

In response, the Brazilian government maintains that Pix is an open public digital infrastructure designed to increase financial inclusion and modernize payments. Officials noted that credit card usage in Brazil grew by 150% between 2019 and 2024, despite the adoption of Pix. The system, which allows for real-time transfers, saw nearly 8 billion transactions in July alone, moving R$ 3.8 trillion.