Key facts
- Senator Flavio Bolsonaro proposed preventing Brazil's Pix system from connecting with non-Western payment networks.
- The proposal aims to address U.S. concerns that Pix could reduce reliance on the U.S. dollar and bypass intermediaries.
- Bolsonaro submitted his proposal to the U.S. Trade Representative (USTR) office.
- The USTR is considering imposing tariffs on Brazilian goods, with a decision expected this month.
- President Luiz Inacio Lula da Silva opposed Bolsonaro's suggestion, calling it an attempt to cede control of Pix.
Senator Flavio Bolsonaro has proposed preventing Brazil's popular instant payment system, Pix, from integrating with non-Western cross-border settlement systems. This move, presented to the U.S. Trade Representative (USTR) office, aims to alleviate U.S. concerns that Pix could diminish the role of the U.S. dollar and bypass traditional financial intermediaries, potentially averting U.S. tariffs on Brazilian goods. The USTR has been investigating Pix for potentially unfair trade practices, with a decision on tariffs expected this month.