Europe Tries to Catch Up with Brazil's Successful Digital Currency

The idea of creating a European digital currency similar to Brazil's Pix is gaining traction. Pix, launched by the Brazilian Central Bank in 2019, allows for instant payments with no fees. Users can send and receive money 24/7 through banking apps or websites, using a unique key such as their mobile phone number or email address.

Iolanda Paz, an expert from Brazil, explained that Pix's simplicity and convenience have contributed to its success. It has become the most used payment method in the world, with billions of transactions processed annually.

However, the US government has taken notice of Pix's impact on foreign companies competing in the Brazilian market. The Trump administration cited Pix as a reason for imposing tariffs on Brazil, arguing that a state-owned system like Pix gives an unfair advantage to domestic players.