How the connection between instant payment systems could redefine cross-border transactions and create new opportunities for Brazilian businesses
Brazil has firmly established its global leadership in instant payments with Pix, but the next major leap in financial innovation lies in the interoperability of payment networks across different countries. Gabriel Galípolo, president of the Central Bank of Brazil, recently revealed that there is a “queue of requests from central banks worldwide” interested in forming agreements inspired by Brazil’s groundbreaking innovations.
This international demand signals an imminent structural transformation: the evolution from isolated payment systems to a globally interconnected network that could revolutionize cross-border transactions, reduce the cost of international remittances, and unlock unprecedented opportunities for companies operating in multiple markets.
The Current Landscape: Isolated Systems in a Connected World
Today, major markets operate domestic instant payment systems that are predominantly designed and regulated on a national or regional scale. Brazil has Pix, India operates UPI, Europe uses the SEPA Instant Credit Transfer (SCT Inst), and the United States has rolled out FedNow. While these systems have revolutionized domestic payments, they are not natively interoperable. This leaves cross-border payments fragmented and reliant on traditional correspondent banking arrangements and multiple intermediaries.
As a result, cross-border transactions remain costly, opaque, and slow compared to the seamless speed and efficiency of domestic instant payments.
Antonio Soares, CEO of Dock, noted, “All countries will have their own real-time payment networks,” but emphasized that “the natural evolution is interoperability between these networks, with the potential to transform currency exchange processes and cross-border transactions.”
Limitations of Current Systems
- High costs: Traditional international transfers can incur fees ranging from 0.5% to 5%, plus IOF taxes (ranging from 0.38% to 1.1%) and foreign exchange markups, which significantly increase the total cost.
- Processing delays: While domestic payments are instant, international transfers still take days to process and settle.
- Lack of transparency: Customers often don’t know the final exchange rates or total transaction costs until after the transfer.
- Regulatory barriers: Different compliance frameworks make integration between national systems challenging.
Infrastructure for Interoperability Already Exists
Project Nexus: The Asian Pilot
The Bank for International Settlements (BIS) is leading the development of Project Nexus, a multilateral platform designed to connect instant payment systems across countries. Scheduled for launch in 2026, the project will initially integrate markets in Asia, including India, Malaysia, the Philippines, Singapore, and Thailand. Nexus represents the first concrete attempt to create global interoperability.
Emerging Standards: The U.S. Case
Meanwhile, the United States is developing a new QR code payment standard, expected to launch in 2026, with key features including:
- Broad accessibility: Open to banks, exchanges, and blockchain networks.
- Simplified user experience: Transparent transactions via QR code scanning without sharing sensitive banking information.
- Scalability: The larger U.S. market offers growth potential that could surpass Brazil’s.
Stablecoins: The Catalyst for Interoperability
A Technological Bridge Between Currencies
Stablecoins backed by different currencies could serve as an immediate layer of interoperability, enabling seamless cross-border transactions while official systems are still under development.
Advantages of stablecoins for interoperability:
- Speed: Transactions are processed in minutes, not days.
- Lower costs: Significantly reduced fees compared to traditional banking systems.
- 24/7 availability: Continuous operation, unaffected by banking hours.
- Transparency: Transactions are fully traceable on public blockchains.
Brazil’s Regulatory Framework for Stablecoins
Brazil has been actively preparing for this new reality by advancing its regulation of stablecoins under the Central Bank’s supervision. In 2024, the Central Bank established a regulatory timeline and initiated public consultations to incorporate stablecoins into the National Financial System framework.
This effort culminated in 2025, when the Central Bank introduced regulations treating transactions with stablecoins—particularly those linked to international remittances—as operations subject to foreign exchange rules, anti-money laundering measures, and prudential supervision.
These regulatory advancements signal that Brazilian authorities recognize the growing role of stablecoins in modernizing international payments and are working to integrate them into the formal financial system in a controlled and secure manner.
The Challenges Ahead: Technical and Regulatory Hurdles
Harmonizing Frameworks
Implementing interoperable payment systems across countries requires navigating complex regulatory harmonization challenges. Each jurisdiction has unique KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements, creating a regulatory mosaic that must be carefully coordinated to maintain transaction efficiency.
Additionally, these systems must account for real-time currency fluctuations, ensuring that exchange rate volatility doesn’t disrupt the user experience or create uncertainty about the final received amount.
Time zone coordination is another significant obstacle. While some markets, like Brazil with Pix, operate 24/7, others only function during business hours, creating misalignment. Furthermore, reconciling differences in transaction value limits and frequency caps imposed by national regulators requires complex negotiations to establish common standards.
A Realistic Timeline: 2025–2030
Phase 1 (2025–2026): Regional Pilots
Key milestones:
- Launch of Project Nexus in Asia
- Implementation of the U.S. QR code standard
- Full regulation of stablecoins in Brazil
Phase 2 (2027–2029): Expansion and Standardization
- Bilateral connections: Initial interoperability agreements between countries with strong trade relationships.
- Global standards: Development of universal technical protocols for interoperability.
- Regulatory frameworks: Harmonization of compliance requirements across jurisdictions.
Phase 3 (2030+): Global Network
- Wide-scale interoperability: Connection of the world’s major payment systems.
- New intermediaries: Emergence of companies specializing in facilitating cross-border transactions.
- Banking transformation: Redefinition of banks’ roles in international payments.
Conclusion: Preparing for the Next Chapter
The interoperability of payment networks represents a revolution already in motion. While systems like Pix have demonstrated the transformative potential of instant payments domestically, the real disruption will come when these networks connect on a global scale.
The international recognition of Brazil’s success—evidenced by growing interest from other countries in partnering with the Central Bank—positions Brazil as a potential leader in this transformation.
For Brazilian companies, this is a unique window of opportunity to position themselves as pioneers in a redesigned global market.
Preparation must begin now. Businesses that develop cross-border capabilities, form strategic partnerships, and invest in the right technology will be well-positioned to capitalize on the opportunities that will emerge with global payment interoperability.
The future of payments is not just about transaction speed—it’s about the ability to connect people, businesses, and economies instantly and efficiently.
For Brazil, a pioneer in instant payments, interoperability is not just a technological evolution—it’s an opportunity to lead the next phase of the global financial revolution.
