Brazil is taking two different but closely linked steps in the development of its digital financial system. The central bank is looking at ways to connect Pix, the country’s highly successful instant-payment system, with payment systems in other countries. At the same time, it is placing tighter controls on some cryptocurrency transfers, including a new rule that can require certain transfers to be held for up to 24 hours for fraud checks.
Taken together, these moves show how Brazil is trying to shape the next stage of digital finance. The country is not simply replacing old payment systems with new technology. It is building public payment infrastructure that can compete with traditional private networks, while bringing digital assets further inside the regulated financial system.
Pix moves beyond Brazil
Pix was launched by the Banco Central do Brasil in November 2020. It allows people and businesses to send and receive money within seconds, 24 hours a day. The system is operated and settled through infrastructure managed by the central bank, while banks, fintechs and other payment providers connect to it.
In 2025, Pix handled almost 80 billion transactions, an increase of 25.7% from the previous year. The value of those transactions exceeded BRL 35 trillion (US$6.64 trillion), up 33.8%. By January 2026, more than 170 million individuals had used Pix, equal to about 80% of Brazil’s population.
The system has also moved well beyond simple person-to-person payments. Consumer payments to businesses have become an increasingly important part of Pix activity. The Banco Central’s Financial Stability Report published in May 2026 said Pix accounted for 29% of all retail payments during the previous six-month period, while transaction volume grew by 21.6% over the semester. The system also maintained availability above 99.9%, with 99% of transactions processed within 0.449 seconds.
This scale has allowed Pix to challenge the role traditionally played by card networks and other payment rails. Instead of relying on a separate card network for every transaction, Brazilian consumers can use a central bank-backed system that connects banks and payment firms directly. Pix is free for individuals and has relatively low costs for businesses, which has helped make it attractive to both consumers and merchants.
The next logical step is to take this model across borders.
In August 2026, the Banco Central said it was studying ways to connect Pix with payment systems in other countries and with multilateral instant-payment hubs. The central bank said both direct links between countries and wider links through shared hubs were being considered. Such links could allow international transfers and purchases to be settled in local currencies within seconds.
The potential benefits are significant. Cross-border payments are often slower, more expensive and less transparent than domestic instant payments. Connecting Pix to other instant-payment systems could allow a Brazilian consumer to pay a merchant abroad using the same type of simple experience used at home. It could also make it easier for Brazilian businesses to receive payments from customers in other markets.
There are already signs of how this could work. In March 2026, Banco do Brasil launched a service allowing Brazilian Pix users to make payments to merchants in Argentina. Customers can scan a QR code, pay in Brazilian reais and have the merchant receive pesos, with the bank handling currency conversion and taxes. Banco do Brasil has said it is considering expansion to other markets.
The central bank’s wider plan could take this idea beyond individual bank partnerships. Instead of each bank building its own international payment links, Pix could potentially become part of a network of interoperable instant-payment systems.
Brazil tightens rules on crypto payments
While Brazil is looking to make its mainstream payment infrastructure more international, it is taking a more cautious approach to cryptocurrency.
The central bank has spent 2026 bringing virtual asset businesses further into the formal financial system. Rules that took effect in February created a framework for virtual asset service providers, covering areas such as customer protection, money laundering controls, governance, security and internal controls. The rules also brought certain international payments and transfers using virtual assets into the foreign exchange and international capital framework.
In February, the Monetary Council also placed virtual asset service providers within the scope of Brazil’s financial secrecy rules. The move was intended to give these businesses a regulatory treatment closer to other financial institutions and strengthen the ability of authorities to detect money laundering, fraud and other illegal activity.
The direction became even clearer in July. The central bank classified virtual asset service providers as Type 3 institutions within its prudential framework. From January 2027, these firms will face requirements covering areas such as risk management, capital and disclosure. The central bank said the approach follows the principle of treating the same activity and risk with the same regulation.
The latest measure focuses specifically on fraud.
Under a rule published on 7 August 2026, virtual asset service providers must place a temporary hold of up to 24 hours on certain assets before sending them to overseas virtual asset businesses or self-custody wallets. The rule applies to amounts above US$10,000, whether considered individually or based on the total moved by a customer during the same day. Other transactions may also be held where the institution’s risk controls require further review.
The 24-hour period is not intended to be a permanent freeze. It gives the provider additional time to assess the transaction and look for signs of fraud before allowing the transfer to continue. The rules are due to take effect on 1 January 2027.
The Banco Central said virtual assets, including stablecoins, are increasingly being used to move money obtained through financial fraud, including transfers to foreign destinations and self-custody wallets. Once funds have left the regulated financial system, recovering them can become much harder.
Brazil manages its payment infrastructure
Brazil is not taking a simple position of being either pro-digital finance or against it. Instead, the central bank is drawing a line between different types of digital infrastructure.
For Pix, the goal is to expand the reach of a regulated public payment system. Its success at home gives Brazil an opportunity to make instant payments faster and cheaper across borders. International interoperability could also reduce the need to depend on older payment routes for some types of retail transactions.
For crypto, the direction is different. The central bank is allowing the market to develop, but it wants crypto businesses to operate under rules similar to those that apply to other parts of the financial system.
Digital finance does not have to mean choosing between public infrastructure and private innovation. A central bank can provide the basic payment rails while allowing banks, fintechs and other companies to build services on top of them.
The challenge is finding the right balance. Pix shows the benefits of making payments fast, simple and widely available. But the crypto rules show that speed alone is not enough. As digital payments become faster and cross-border links become easier, financial institutions and regulators also need better ways to identify fraud, manage risk and stop illicit money from moving through the system.
Brazil is therefore pursuing two sides of the same digital finance strategy. It is trying to make trusted digital payment infrastructure more open and international, while making the parts of digital finance that carry higher risks more controlled and accountable.
If Brazil succeeds, Pix could become more than a national payment system. It could become part of a wider network of instant-payment systems, giving consumers and businesses a faster alternative for some cross-border payments. At the same time, the treatment of crypto as a regulated financial activity suggests that Brazil sees the future of digital assets not as a parallel financial world, but as another part of the financial system that must meet clear standards for safety and trust.
