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U.S. moves to curb Brazil's Pix payments, as dollar stablecoins surge
The U.S. plans a 25% Section 301 tariff on most Brazilian goods starting July 22, even as dollar-linked stablecoins account for about 90% of Brazil's crypto transactions.
The United States will impose a 25% Section 301 tariff on most Brazilian goods starting July 22, targeting what U.S. officials say are unfair advantages tied to Brazil's state-run Pix instant payment system, according to CoinDesk. Washington argues Pix's structure, including free services for individuals and capped merchant fees, disadvantages American payment firms such as Visa and Mastercard.
The action is unusual in that it uses Section 301, a trade authority typically applied to issues like subsidies and market access, to address a domestic payment rails policy. The U.S. Trade Representative says Pix is now processing more transactions in Brazil than credit and debit cards combined, and that financial institutions with more than 500,000 active accounts must offer Pix to individuals free of charge.
CoinDesk also points to the dollar's role in Brazil's digital economy, noting that the U.S. is trying to protect dollar-based trade. Even so, dollar-linked stablecoins already circulate widely in Brazil, and the outlet says they account for about 90% of Brazil's crypto transactions.
The report adds that Pix has expanded rapidly since its November 2020 launch, with more than 90% of Brazilian adults using the system. In June, CoinDesk says Pix handled nearly 7 billion transactions worth roughly R$3 trillion, or about $590 billion.