Trump targets Brazil’s payments system while dollar stablecoins are quietly overtaking country’s payments
Washington views Brazil’s promotion of non-dollar payment channels, including Pix and the growth of stablecoins, as a potential threat to dollar-based trade, even as dollar-linked stablecoins account for about 90% of Brazil’s crypto transactions.
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Summary
- The United States will impose a 25% Section 301 tariff on most Brazilian goods starting July 22, targeting what it calls unfair advantages created by Brazil’s state-run Pix instant-payment system.
- U.S. trade officials argue that Pix’s rules, including free services for individuals and capped merchant fees, disadvantage American payment firms like Visa and Mastercard in a market where Pix now processes more transactions than cards.
- The move comes as U.S. is trying to protect the dollar; however, the U.S. dollar already circulates widely in Brazil’s digital economy via stablecoins.
