Defying US Criticism, Brazil Mulls Pix’s Globalization
Key Takeaways:
The move of taking Pix’s functionality to other countries might bring unintended consequences to Brazil, as a report recently released by the Office of the United States Trade Representative (USTR) claims that Pix puts private payment alternative rails at a disadvantage, as it offers zero fees and instant finality, leaving international giants like Mastercard and Visa in the dust.
Nonetheless, President Luiz Inácio Lula da Silva has made the defense of Pix a flag of his campaign to be re-elected in the upcoming elections, claiming that Pix belongs to Brazil and that no one will change it due to the service it provides to the Brazilian people.
Internationalizing Pix might set a precedent for other countries, which could also develop their own settlement systems without using current international standards and hurting the U.S. dollar hegemony.
Colombian President Gustavo Petro supported Pix’s internationalization, proposing Colombia as the next destination for this initiative. Criticizing the actions of the Office of Foreign Assets Control (OFAC), he declared:
“I ask Brazil to extend the PIX system to Colombia—and hopefully, to stop obeying the OFAC list, which is no longer useful.”
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