The United States has launched a formal investigation into Brazil’s digital trading skills, with attention to PIX, the country’s instant payment system that has quickly moved private sector competitors.
The investigation, announced On Tuesday by US trade representative Jamieson Greer, it will be evaluated whether Brazil’s digital and trading policies are unfair US companies.
Greer said the investigation will review “Brazil’s tariff and non-tariff,” which says the country offers treatment preferences to other trading partners while disabilities to US exports.
Another focus is Brazil’s alleged punishment of American tech firms that refused to censor political speech. In August 2024, the Supreme Court of the Federal Court of Brazil Ordered a national suspension On the social media platform X, after Elon Musk refused to appoint a legal representative in the country.
The investigation marked the latest addition to tensions between the two countries. On July 7, Trump took on social media to call Brazil authorities to overthrow the Progress of former President Jair Bolsonaro, whom he called “witch hunt.”
A few days later, Trump threatened to investigate a letter to Brazil President Luiz Inácio Lula da Silva, along with a 50% Brazilian tariff import Starting August 1.
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Pix and Brazil finance system
Launched in 2020 by Brazil’s Central BankPIX is a government -powered payment system that allows people to send and receive money immediately, 24/7, at no or very low cost. Unlike traditional payment systems, PIX allows users of credit card networks intact, enabling direct transfers through mobile apps, QR codes, or account keys.
With over 150 million users and receiving over 60 million businesses, PIX has quickly become Brazil’s digital spine Economy. In just five years, it has become a default payment method for everyone from street vendors to utility fees, which change how money is moving in the country.
The US investigation will investigate whether Brazil favors its local payment system to established American alternatives such as Mastercard, Visa, and other US-based companies.
https://www.youtube.com/watch?v=qmqka4otfig
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The intersection of domestic payment and global finance
Although PIX is only available indoors, it is part of a broader transfer that is concerned with Trump and the US officials.
Crypto-fintech bridges like truther Allow people around the world to send stablecoins and settle down immediately bank accounts via Pix. This allows individuals and businesses Bypass traditional financial metals Like the Swift System, Paypal and US remittance services such as the Western Union.
For Trump, the concern is beyond the PIX payment system. As a member of the BRICS Economic Bloc – next to Russia, India, China and South Africa – Brazil is part of a coordinated effort to reduce reliance on US dollars and western financial infrastructure.
In 2024, Leaders adopted “BRICS PAY,” A cross-border payment platform to miss SWIFT and facilitate local currency transactions. In a recent BRICS SUMMIT in Rio de Janeiro, BLOC discussed the creation of a joint reserve money as an alternative US dollar, a step reported to have drawn the Ire by the US president.
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