Brazil’s banking federation Febraban defended the Pix instant payment system against accusations by the United States that the platform benefits from unfair competitive advantages.

The comments came after the Office of the United States Trade Representative proposed additional tariffs on Brazilian goods and questioned the role of Brazil’s Central Bank in developing and promoting Pix, Xinhua reported.

“There must be some misunderstanding, insofar as it makes no sense to see anti-competitive problems in Pix,” Febraban president Isaac Sidney told reporters.

US authorities argued that Pix may have received preferential treatment compared with other payment methods, including services linked to international card companies.

Sidney rejected the criticism and said the accusations lacked technical grounds. He also denied claims that Pix could facilitate illegal financial activity.

“It also makes no sense to see the Pix as any avenue for channeling illicit funds. We have a regulated and supervised financial system,” he said.

The banking executive added that Brazil’s financial system continued to operate normally and that there was no risk to Pix operations.

Brazil is expected to present its arguments during a hearing linked to the USTR investigation before a final tariff decision due on July 15.

Launched in 2020 by Brazil’s Central Bank, Pix has become the country’s main digital payment system.