ECB is now launching an initiative aimed at making it easier for companies to develop services for making instant payments between different currencies. „Initially, payments will be possible between euros, Swedish kronor, and Danish kroner. A project that examines the possibility of making payments between currencies outside the EU will also be initiated.” – according to a press release.
The cross-currency payments will be settled on the Target Instant Payments Settlement (TIPS) platform. The Riksbank’s payment system RIX-INST, which settles instant payments in Swedish kronor, is already connected to TIPS. This enables companies and organisations that have joined RIX-INST to utilise the cross-currency service. Today, for example, all Swish payments are settled in RIX-INST.
In connection with the decision by the ECB to launch the service, a decision was also made to explore the possibilities of making payments between currencies outside the EU. In practice, this means examining whether it is possible to connect TIPS with other similar systems outside the EU.
The work to improve cross-currency payments in TIPS has been ongoing since 2020, with the Riksbank and Danmarks Nationalbank playing an active role.
“It is very positive that we have now come so far that we will actually be able to provide a functional infrastructure for cross-currency payments. The decision supports the global goals within the G20 to make cross-border payments cheaper, faster, and more secure. It is now up to the market to create the services that the general public demands,” says Erik Thedéen – Governor of the Riksbank.
At the beginning of October, the Riksbank held an information meeting to which they invited participants from banks and other market participants to talk about TIPS and the service for cross-currency payments. The Riksbank will continue to have a dialogue with the market on how both companies and private individuals can access services that offer fast and cheap cross-currency payments.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
