The US has launched a formal investigation into Brazil's digital trade practices, spotlighting the Pix instant payment system.
US Investigation
The investigation was announced by US Trade Representative Jamieson Greer. It aims to examine whether Brazil's digital and trade policies unfairly disadvantage American firms. Greer pointed to Brazil's 'tariff and non-tariff barriers,' noting the country gives preferential treatment to other trade partners.
Pix Payment System
Launched in 2020 by Brazil's Central Bank, Pix enables users to send and receive money instantly, 24/7, often at no or very low cost. Pix has rapidly become the default payment method in Brazil, boasting over 150 million users and acceptance at over 60 million businesses.
Global Financial Connections
Although Pix is only available domestically, it is part of a broader trend causing concern among US officials. As a member of the BRICS economic bloc, Brazil collaborates with other nations to lessen reliance on the US dollar, which also raises alarms in Washington.
The investigation launched by the US highlights escalating tensions between the two nations and underscores the importance of digital payment systems in the global economy.
