Brazil and ECB weigh linking Pix with Europe's instant payment system

Brazil's central bank and the European Central Bank (ECB) are in early discussions to interconnect their real-time payment systems, a move that could take Brazil's Pix platform across borders for the first time.

Two sources with direct knowledge of the matter said technical teams from both institutions are assessing the feasibility of such a link. One source indicated that a pilot project could be launched in 2028 if the initiative progresses as planned.

The ECB confirmed it is conducting a preliminary investigation into interlinking its TARGET Instant Payment Settlement (TIPS) platform with Pix. In June, the ECB had identified Pix as a "currency corridor under exploration" for TIPS. Brazil's central bank declined to comment on the matter.

Pix, launched in late 2020, has transformed Brazil's payments landscape. It enables instant transfers through banking apps, offers free person-to-person payments, and charges merchants significantly lower fees than traditional card networks. The system has brought tens of millions of Brazilians into the formal financial system and reduced the market share of debit and credit cards, affecting global players like Mastercard and Visa.

The platform's growing international appeal has created friction between Brasília and Washington. The United States cited Pix among "unfair practices" when it imposed 25% tariffs on Brazilian goods in July. Last month, Brazil's central bank said it was exploring links between Pix and similar systems abroad and has signed information-sharing agreements with 65 foreign counterparts.

The potential Europe-Brazil link adds to unease in Washington, particularly as major emerging economies discuss reducing reliance on the U.S. dollar.