Internationalization of Pix – an opportunity for Brazil

Trump's tariff hike opened a golden opportunity for Brazil. The mention of Pix as a thorn in the side of US payment companies and credit card brands, which have dominated global banking transactions for decades, launched a possibility that until then had remained dormant in the abstract realm of ideas.

Uncle Sam's questioning is justified: Pix, developed by the Central Bank of Brazil, is a success in terms of applicability and has become popular. Fast, secure, legal, and regulated, it allows for greater agility in business and boosts economic activity. It is a strong rival to credit cards, with their fees that erode the profit margins of companies—especially small ones.

Trump has set the stage; the next steps are up to Brazil. The dollar is — or was — one of the pillars of US hegemony in the world, which is now in frank decline. This currency provided great strategic, economic, and political advantages to the United States. However, several countries have sought viable alternatives to the dollar standard as the main currency of international trade, either due to the recurring excesses of the White House's foreign policy or the desire to create mechanisms that cannot be used against them — especially in the case of sanctions.

It is in this context that the opportunity arises. The promises of cryptocurrencies — especially Bitcoin — have not yet proven to be adequate substitutes for national fiat currencies. Pix technology is mature, tested, and approved, and can be integrated into other national economies without detriment to the States. It is up to Brazil to demonstrate willingness, share the technology, and guide those interested in the implementation process.

Pix as Brazilian soft power - It's worth remembering that Pix was developed under the auspices of a public institution: the Central Bank of Brazil, which deserves recognition and merit. Thus, this revolutionary national technology is a candidate to occupy a prominent place on the global stage, with the potential to strengthen Brazil's geopolitical positioning in the international arena.

The plan - The internationalization of Pix already has a favorable context, but it depends on the political will and the execution of an implementation plan by the Brazilian government. This plan needs to be meticulous and discreet, in order to avoid or minimize opposing movements.

In principle, the Central Bank and the Ministry of Foreign Affairs (Itamaraty) would be the key actors to mobilize—the former in the field of technical knowledge and technology sharing; the latter in coordinating with partners. These partners could be chosen based on proximity and opportunity. In this respect, the Brazilian diplomatic corps has all the necessary attributes to define the best strategy, whether starting with Mercosur, BRICS, the Global South, European partners, among others.

Bonus - Domestically owned banking institutions, as well as fintech companies, could be partners in this expansion strategy.