What explains the US's discomfort with the advancement of Pix?

Experts see no compelling reason for the U.S. government, under Donald Trump, to place Pix, an instant payment system developed by the Central Bank of Brazil, under investigation for alleged unfair trade practices. The investigation was initiated by the Office of the U.S. Trade Representative (USTR) under the U.S. Trade Act—the same law Trump used in 2018 to impose tariffs on China.

The tool is not mentioned by name in the document on the case, which only refers to transaction services offered by the Brazilian government. However, Pix is the only instant payment system of its kind. The US's list of concerns also includes issues such as piracy, illegal deforestation, data transfers, trade benefits to countries like Mexico and India, and failures in governance and anti-corruption.

The measure, made official a week after the announcement of 50% tariffs on Brazilian products, effective August 1, surprised economists and financial sector authorities.

One of the justifications given for the American decision was that the state instrument could harm competition with US companies such as Visa, Mastercard, Apple Pay and Google Pay.

Ralf Germer, CEO of PagBrasil, sees no basis in this argument. "The Brazilian system is local, works only with payments in reais, and was developed to meet the needs of the Brazilian population, offering more advanced technology than other systems and creating positive competition in the market," he says. "I don't see Pix as being created to compete directly with the United States, and there's no evidence of that."

Big Tech and data confidentiality are also mentioned

The US's concerns about electronic payments are part of a broader discussion involving American tech giants like Google and Meta (WhatsApp). These companies operate their own payment systems and may view Pix as a competitor.

Fabrizio Velloni, chief economist at Frente Corretora, says the argument doesn't make sense. "The hypothesis that Pix poses a direct threat to American platforms like PayPal, Facebook Pay, or WhatsApp Pay doesn't hold water," he says.

"In practice, it's not quite like that. Pix is a product that fits into the entire payments chain—it functions as the final step in the payments chain, both at the origin and at the completion of the transaction. I see these tools as much more complementary than substitutes. One doesn't effectively eliminate the other."

Another point involving big tech concerns the confidentiality of user data. According to the indictment, Brazilian law makes it difficult for these American companies to access Brazilians' personal data, affecting business models based on digital advertising.

For Marcelo Crespo, coordinator of the Law program at ESPM and a specialist in Digital Law, the criticisms are unfounded and reveal a political rather than a legal motivation. "Labeling the LGPD as an 'unfair barrier' ignores the fact that it applies equally to all companies, national or foreign," Crespo asserts.

"This is a legitimate instrument for protecting fundamental rights and digital sovereignty, aligned with international best practices. Clearly, the main reason for the investigation is not Pix or the LGPD, which is far from representing an obstacle to US companies doing business here in Brazil."

He also warns of the risks of Brazil giving in to external pressure on sensitive issues like data protection. "We must maintain a firm stance. Citizens' privacy cannot be treated as a bargaining chip in trade disputes."

Trump's focus may be on the BRICS

The possibility of international Pix being used as a payment method between BRICS countries (Brazil, Russia, China, India, South Africa, United Arab Emirates, Egypt, Saudi Arabia, Ethiopia, Indonesia and Iran) could bother the US.

Analysts suggest this would threaten the dollar's dominance in international trade and directly compete with the SWIFT system, a global financial transfer network, and could be used as a tool for international sanctions, especially by the US. Trump has already expressed opposition to the creation of a new currency or payment method to replace the dollar and has threatened to impose tariffs on BRICS members.

For Crespo, the international scenario may have weighed more heavily on the US president's investigative decisions. "His [Trump's] concern isn't just about Brazil," he says. "I believe this concern stems much more from the joint statements released during the BRICS meeting than from anything specific about the country. Since Brazil is aligned with Russia and China, which are major powers within the group, and have signed joint statements, I think this is more troubling than Brazil, individually, with its Pix or its LGPD."

Pix is a successful showcase for Brazil

There is also speculation about the threat posed by Pix's success and its role as a showcase for Brazil. Seen as an efficient model of state-owned innovation—free for individuals and low-cost for businesses—that can be replicated by other countries, it could pose a potential threat to the dominance of American companies in the global payments market.

On the international stage, the US has a history of challenging policies that favor domestic infrastructure in emerging countries, such as Indonesia , India, and China (with UnionPay). These low-cost public infrastructures are adopted for social and financial inclusion and to reduce dependence on dollar-pegged networks, generating geopolitical friction.

“What we do know is that in Indonesia, the United States expressed specific concern about the competition that a local instant payments system posed to credit cards,” says Germer.

"Therefore, we can only speculate whether something similar is happening with Pix. Perhaps there's concern about the competition it represents for American payment systems—especially credit and debit cards, particularly those like Visa and Mastercard."

But he emphasizes: "So far, we don't have 100% clarity on this. We don't know exactly why the United States — or the Trump administration — is concerned about Pix, because they haven't yet commented in detail on this concern."

For Velloni, of Forte Corretora, there's no consistent answer. "The key is to try to understand what's going through the US government's mind—what concrete questions they have—so that we can reach a more informed conclusion. Right now, everything is very vague."

Systems like Pix tend to proliferate

PagBrasil's CEO points out that Brazil is not alone in developing instant payment systems like Pix. In various parts of the world, similar solutions are being adopted by governments and private institutions, following a global trend toward modernization and financial inclusion.

In Latin America, for example, countries like Uruguay and Argentina already have their own rapid money transfer systems. Colombia recently launched the Brevé system, while Peru has yet to implement a national solution. "In general, these systems can be created by either central banks or private companies," he explains.

In Asia, one of the main examples is UPI ( Unified Payments Interface ), created in 2016 in India. The system is very similar to Pix and has a wide reach in the country. China also has similar alternatives, such as Alipay and WeChat Pay, reinforcing the presence of these systems in major Asian economies.

In Europe, several countries operate their own instant payment systems, which have become interconnected in recent years, increasing integration between banks and national systems. The digitization of payment methods is seen as an important step toward facilitating trade and increasing financial efficiency.

Finally, in the United States, there are at least two relevant systems: Zelle, developed by a consortium of large banks and used by about 100 million people; and FedNow, launched by the Federal Reserve , which is a hybrid entity — public and private.

Both allow free and immediate transfers between users, although, unlike in Brazil, American banks are free to charge for the service.

However, these systems haven't achieved the same level of penetration and popularity as Pix in Brazil. Joining FedNow, for example, was optional, and none of the major American banks have joined yet.

PagBrasil's CEO, however, does not believe that the US initiative will have any impact on the country or impede the evolution of payment methods. "I believe—and I am convinced—that this will have no impact on the development of Pix," he stated.

For him, the United States' attempt to challenge the Brazilian model shouldn't interfere with a movement that's already global. "The economy needs to be boosted by efficient payment systems—both in terms of technology and cost."

The executive emphasizes that Pix is a successful innovation, supported by the population and the entire economic chain. He sees the advancement of instant payments as an irreversible reality, driven by digitalization and the need for fast and affordable solutions. "This trend will continue, regardless of how this US initiative evolves," he concludes.