Flávio proposes that the USA bar Pix from "non-Western" systems

In a document sent to the United States last Wednesday (1st), senator and presidential candidate Flávio Bolsonaro (PL) proposed the creation of legislation that would bar the use of Pix in "non-Western" international systems. He also refutes the argument that Pix represents unfair competition with companies in the country.

Within what he called "pathways to remediation", the senator details that "the decisive signal" for the United States government not to punish Brazil due to the payment system would be "a legislative commitment that Pix will not be interconnected to non-Western cross-border settlement arrangements".

In his response, Flávio states that the North American thesis that Pix, controlled by the Brazilian Central Bank, would represent a conflict of interests with North American payment institutions is "exaggerated", in addition to that there are still several functions of private payment instruments that Pix does not replace.

"Private payment instruments - credit and debit cards, and other types of companies - offer functions that PIX does not replace, including consumer credit, financing, protection against disputes and chargeback mechanisms", says the senator.

To reinforce his argument, the senator states that Pix has brought greater participation by the population in the banking system, expanding the consumer market and business opportunities for North American platforms.

"Card transaction volumes in Brazil continued to grow in parallel with Pix; and the formalization of tens of millions of Brazilians expanded the consumer market for American companies - in e-commerce, platforms and fintech - in a country where the United States leads in foreign direct investment", says an excerpt from the document.

Flávio also states that he could propose a review of the regulation and taxation of payment systems, which "would not privilege any company; on the contrary, it would expand consumers' options", in addition to promoting "economic growth results that would benefit the Brazilian consumer and the economy in general as directly as they benefit the [payments] sector itself".

Remember the case
The USTR (United States Trade Representative) proposed, in June, the imposition of 25% tariffs on all imports from Brazil, citing Pix as one of the reasons for the measure. According to the report, the system would harm "American companies that operate in competing electronic payment services."

The commercial office intends to conclude the investigation that could initiate the application of taxes against Brazil by July 15th.

Flávio told the US that taxes would give political victory to the Lula government | CNN 360°

*Under the supervision of Renata Souza

Source: CNN