Brazil warns that US classification of PCC and CV as terrorists threatens PIX
The Brazilian government has warned that Washington's decision to designate the PCC and Comando Vermelho as terrorist organisations could harm the national financial system and PIX.
PIX and sovereignty at risk, Brasília warns after Washington's decision
The Brazilian executive warned on Thursday that the US designation of the PCC and Comando Vermelho (CV) as terrorist organisations could affect the national financial system and innovations such as PIX. The warning is contained in a statement released by the Palácio do Planalto, according to reporting by RTP.
In the communiqué, the government defended that Brazil is waging a "permanent fight" against criminal factions and militias, but rejected unilateral external intervention. The text distinguishes the terror exercised by the factions — motivated, according to Brasília, by "profit through crime" — from international terrorism of an ideological, political or religious character.
Criticisms of the Bolsonaro family
The statement accused members of the Bolsonaro family of encouraging "foreign interference" in Brazil's internal affairs. Without explicitly mentioning names, the message targeted Senator Flávio Bolsonaro and former deputy Eduardo Bolsonaro, who resides in the United States and lost his seat in the Chamber of Deputies.
Flávio Bolsonaro met this week in Washington with US President Donald Trump and Secretary of State Marco Rubio, arguing to both in favour of the classification of Brazil's two largest criminal factions as terrorists. The Palácio do Planalto described the initiative as "deplorable".
"It is deplorable that, once again, members of the Bolsonaro family travel to the United States to defend foreign intervention in Brazil," the executive stated in the communiqué.
Consequences for the financial system
According to the government, "unilateral, non-negotiated measures could weaken the fight against criminals and generate actions that put at risk the lives of people who have nothing to do with the crimes". The Palácio do Planalto further warned that such measures could undermine international cooperation and information-sharing between police forces.
PIX, an instant payment system developed by Brazil's Central Bank and widely used in the country, had previously been in the sights of the White House as part of a trade investigation opened in July 2025, having been classified as "an unfair practice" for benefiting Brazil at the expense of sector giants such as Visa and Mastercard. The European Parliament, for its part, has been monitoring the system with interest, viewing it as a reference for the future implementation of the digital euro.
"They could affect our financial system and national innovations such as PIX, which trouble foreign interests," the executive emphasised.
Cooperation proposal rejected by Washington
The communiqué recalled that in April, Brazil presented to the US State Department a cooperation proposal based on intelligence, combating money laundering and international arms trafficking. The government reiterated that it accepts international cooperation in fighting organised crime, but rejected "arbitrary measures from abroad" that could affect Brazilian sovereignty and the economy.
"National sovereignty is non-negotiable," the statement concluded.
Lula and Alckmin also respond
Earlier, during an event in Sergipe, President Lula da Silva referred to Flávio Bolsonaro as a "traitor to the nation" and stated that Brazil would not accept being treated as a "banana republic" by the United States.
Vice-President Geraldo Alckmin suggested that the repercussion of the US decision, celebrated by Bolsonaro supporters, was being exploited politically, after weeks of damage to Flávio Bolsonaro over his alleged involvement with imprisoned former banker Daniel Vorcaro, of Banco Master.
"This is bad for Brazil. It could have consequences for the financial system, for the economy. It will not resolve anything in terms of fighting crime and it could harm the economy," Alckmin stated.
Designation takes effect on 5 June
The US State Department announced its intention to designate the PCC and Comando Vermelho as Foreign Terrorist Organisations (FTOs) and Especially Designated Global Terrorists (SDGTs), expanding sanctions and financial restrictions against the two groups. The measure will take effect on 5 June.
Source: RTP