Brazil’s Pix payment network has become a live issue in the presidential race after a U.S. trade report criticized its market impact. President Lula defended the system, while Flavio Bolsonaro denied claims he wants to dismantle it and accused Lula of seeking to tax Pix transactions.
Brazil’s central bank is considering an international version of Pix for cross-border payments and remittances. The system has more than 175 million users and has processed nearly 200 billion transactions since 2020.
The Trump administration said on July 18 that it will impose a 25% Section 301 tariff on most imports from Brazil starting July 22, with Brazil’s central bank-run instant payment system Pix emerging as a central point of dispute. According to CoinDesk, Washington argues that Pix gives US card networks such as Visa and Mastercard an unfair disadvantage because the system charges individuals no fees and caps what merchants can be charged. Pix has already surpassed credit cards in transaction count in Brazil. The dispute comes with a second layer. Data from Brazil’s tax authority shows that US dollar-denominated stablecoins account for about 90% of the country’s crypto trading volume, with most of that activity tied to payments and settlement. At the same time, Brazil’s central bank is moving to tighten that channel. Resolution 561, released in May, is set to take effect on Oct. 1 and will bar payment institutions from using stablecoins or other crypto assets to settle cross-border payments. The report places the clash in a wider BRICS context, where Washington has been watching efforts to reduce reliance on dollar-based payment infrastructure, including Brazil’s Pix, China’s CIPS and Russia’s SPFS.
With 175 million users, Brazil’s instant payment system Pix has become a key election issue. The U.S. demands reform, President Lula resists, and candidate Flavio Bolsonaro tries to claim the system as a conservative legacy, sparking a fierce political battle.
Brazil’s central bank is considering an international version of Pix for cross-border payments, while Mercado Libre is ending its Mercado Coin program. The rapid rise of Pix is also drawing scrutiny from U.S. trade officials and attention in Brazil’s political debate.
Brazil's central bank plans International Pix for cross-border payments; Mercado Libre ends Mercado Coin with April 17 auto-conversion; Pix becomes political hot potato ahead of presidential elections.
Brazil’s central bank is preparing an international version of Pix for cross-border payments, while Mercado Libre is winding down its mercado coin program and converting remaining balances into local fiat after April 17.
Brazil’s central bank is considering an international version of Pix for cross-border payments and remittances, a move that could deepen competition with private payment networks and expand Pix’s influence beyond Brazil.
