US to investigate Brazil’s digital payment system

Key Points

1. The US Trade Representative announced an investigation into Brazil's Pix system to determine if it unfairly disadvantages US exporters and fintech companies like Mastercard and Visa.

2. Pix, launched in 2020 by Brazil's Central Bank, is a widely adopted instant payment system with over 150 million users and 60 million businesses, transforming Brazil's digital economy.

3. Former US President Trump has criticized Brazil's policies, threatening a 50% tariff and calling the investigation a 'witch hunt' in response to Brazil's Supreme Court actions involving Elon Musk.

4. Brazil's participation in BRICS includes discussions on 'BRICS Pay,' a platform to bypass SWIFT, and the potential creation of a joint reserve currency, raising US concerns over global financial shifts.

5. The investigation highlights tensions between US trade policies and Brazil's growing influence in digital payments and international finance through BRICS initiatives.