The Jacob Shapiro Podcast Sovereignty vs. Swipe Fees
Oct 27, 2025
The discussion dives into Brazil's PIX payment system and its potential threat to U.S. credit card profits. They explore the geopolitical tension arising from the U.S.'s investigation into PIX and its implications for U.S.-Brazil relations. Privacy concerns linked to central bank control are also examined. As U.S. tariffs take a toll, Brazilian nationalism surges, complicating the political landscape. Among other topics, they analyze the effects of U.S. military presence in the Caribbean and how rising cocaine production influences regional dynamics.
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PIX Is Central-Bank Payment Infrastructure
- PIX is a central-bank-managed payment rail that enables instant, low-cost transfers and functions like a hybrid CBDC.
- It operates as national infrastructure, not a private company, shifting payment sovereignty to Brazil's central bank.
Investigation Driven By Rent Threats
- The U.S. investigation into PIX looks driven by displaced credit-card rents and lobbying, not only regulatory concerns.
- PIX symbolizes sovereignty vs. private profit, threatening U.S. card networks' fee model.
Lobby Claims Mask Competitive Protectionism
- Lobbyists framed concerns around PIX as transparency and governance issues to defend incumbent fees.
- Jacob and Rob argue the proper response is adopting similar public payment rails, not protecting credit-card rents.