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The USTR, which last month criticized Brazil’s competition practices and said the Pix system is unfair, opened debates on the topic, with a focus on the Pix framework led by the Central Bank of Brazil. In Washington, Gustavo Pessoa, a professor at FGV, testified alongside Vinícius Nunes Pinto, a Brazilian payments executive. He argued that Pix is not the largest instant payments system by volume but stands out for its broad adoption and impact, and he noted that the technology is here to stay. Pinto floated a possible bridge between Pix and Fed Now, saying they share similar technology and messaging standards that could strengthen trade between the United States and Brazil. The discussions included input from Melinda St Louis of Public Citizen, who defended Pix as public infrastructure that acts as a neutral payments backbone, while addressing concerns about the Fed’s dual regulatory and operational roles in the United States.
- USTR said Brazil’s competition practices are unfair and Pix is treated unfairly.
- Brazilian experts urged Pix and FedNow to work together because their tech is similar.
- Supporters say Pix boosted financial inclusion and isn’t against U.S. payment firms.
- Public Citizen calls Pix public infrastructure, a neutral way to pay.
- Panelists noted regulatory overlaps don’t prove bias and support Pix‑FedNow links.
USTR Debates Brazil’s Pix System in Washington Forum
Panels Narrow Focus to Brazil’s Instant Payments
The U.S. Trade Representative’s office opened a two-day hearing in Washington to examine competition in Brazil’s payments landscape. While seven panels were scheduled, only one centered on the country’s instant payments system, Pix, overseen by the Central Bank of Brazil. The session followed last month’s USTR critique of Brazil’s competitive practices and its view that Pix receives unfair and discriminatory treatment.
Brazilian Experts Defend Pix as Inclusive Infrastructure
Participants from Brazil testified that Pix should be viewed as a public digital payments backbone rather than a private market irritant. Gustavo Pessoa, a professor at FGV, told officials that Pix is not the largest system by transaction volume—India’s network handles more—but it stands out for its broad adoption among the public and businesses. He suggested that digital payments are here to stay and that the United States could benefit from engaging with Pix, potentially learning from its approach and adapting to new payment technologies.
Vinícius Nunes Pinto, a payments industry executive, floated the idea of interlinking Pix with the U.S. FedNow service under development by the Federal Reserve. He argued the two systems share technical characteristics and messaging standards, which could allow the creation of bridges between them to bolster bilateral trade.
Focused Testimonies and Observations
Testimonies were brief, with speakers allotted short five-minute slots, but participants described the atmosphere as constructive and open, with viewpoints varying across the panels. Both Brazilian witnesses emphasized technology and inclusion, rather than tariffs or market protectionism.
Pessoa reiterated his earlier position that Pix does not discriminate against other payment providers, noting that the system has spurred higher credit card issuance as financial inclusion expanded in Brazil. He also highlighted that Google Pay has emerged as a leading Pix initiator in the country, illustrating how digital wallets can drive uptake.
Public Interest Voices Support Pix as Public Infrastructure
Melinda St Louis, representing the Public Citizen NGO, argued in favor of Pix as a form of public digital infrastructure. She framed Pix as a neutral payments backbone similar to essential public utilities, underscoring its role in enabling low-cost transactions and supporting financial inclusion. She also noted that the U.S. public system serves as a regulator and operator in different capacities, a point she used to address concerns about potential conflicts of interest.
St Louis argued that the central bank of the United States has a dual role in supervising banks and operating FedNow, and she suggested that this arrangement does not automatically constitute unfair treatment of foreign payment providers. She indicated that any claims of discrimination should be grounded in objective facts rather than assumptions.
Conclusion
The hearing highlights a broader view that Pix, as a public digital payments backbone overseen by Brazil’s Central Bank, has achieved broad adoption and supports financial inclusion, even as questions about competition and perceived unfair treatment linger. Brazilian experts argued that Pix is not the largest system by volume, yet its reach demonstrates the value of inclusive, neutral infrastructure that serves both consumers and merchants. Proposals to bridge Pix with the FedNow service reflect a shared technology and messaging standard that could strengthen bilateral trade between the United States and Brazil. Public-interest voices urged careful governance, noting that regulatory overlaps do not automatically prove bias, and that such links should be evaluated on objective facts. Taken together, the discussions suggest that Pix offers actionable lessons for payments innovation and international cooperation, reinforcing that technology-enabled inclusion and transparent governance can coexist with competitive markets.
Frequently asked questions
- What did US officials ask about Pix at the hearing? They asked how the US could gain from linking Pix with Fed Now and what a bridge could do for trade.
- Who testified about Pix in the hearing? Gustavo Pessoa and Vinícius Nunes Pinto spoke on Pix. A US Treasury official asked questions.
- What was Pinto’s idea about Pix and Fed Now? He suggested a Pix–Fed Now integration using similar technology to create bridges between the systems.
- How did Pix supporters defend the system at the hearing? They said Pix is not discriminatory and is public infrastructure. It boosts inclusion. Google Pay is a big Pix initiator, and card issuance rose after Pix.
- What did Melinda St Louis say about Pix? She called Pix a public, neutral payments infrastructure. She argued the Fed’s roles don’t prove unfair bias.