La Jornada: Brazilian banks reject US offensive against digital payment system

Sao Paulo., The Brazilian Federation of Banks (Febraban) defended the Pix instant payment system against accusations of unfair competition made by the United States in the framework of a commercial investigation that questions alleged unfair practices in Brazil, and stated that there is a “misunderstanding” about the operation of the popular digital platform created by the Central Bank of the South American country.

The president of the entity, Isaac Sidney, maintained that the US accusations lack technical basis and that the Brazilian government, the Central Bank and the financial sector are prepared to offer clarifications about the system.

“There must be some misunderstanding, to the extent that it makes no sense to see anti-competitive problems in the Pix,” Sidney told reporters.

The statement responded to a new trade offensive by the United States against Brazil, after the Office of the United States Trade Representative (USTR) proposed the application of an additional 25 percent tariff on Brazilian products. Among the arguments presented, he questioned the role of the Central Bank in the development and promotion of the Pix.

According to the US evaluation, the system would have received preferential treatment over other means of payment, in an indirect reference to the large international credit and debit card companies.

Sidney also rejected any association between the Pix and illicit activities.

“It also makes no sense to see in the Pix any way to channel illicit resources. We have a regulated and supervised financial system. The regulation and supervision exercised by the Central Bank do not owe anything to any geography,” he stated.

The leader pointed out that the Brazilian banking sector works under a normal scenario and ruled out impacts on the operation of the instant payment system.

The president of Febraban recalled that a hearing is already planned within the process opened by the USTR for Brazil to present explanations before a final decision on the rates, which is scheduled for July 15 and will depend on the approval of US President Donald Trump.