The Riksbank intends to use the Eurosystem’s payment platform
Published: 3 November 2021
RIX-INST will be launched in May 2022, and the Riksbank has signed an agreement on using the Eurosystem’s platform for instant payments, known as TIPS (Target Instant Payment Settlement), for the system. Using TIPS as a platform supports the ongoing harmonisation of the Nordic payment markets towards a common European standard (see Nordic harmonisation). It is also an advantage that the Riksbank can share the costs with the Eurosystem. A further possible advantage is that payments to and from the eurozone can be faster, simpler and cheaper when the Swedish krona and the euro are available on the same technical platform. The Riksbank and the ECB began investigating the possibility of this type of solution in the autumn of 2020, and in June 2021 the ECB confirmed that the TIPS platform can be used for cross-currency payments. Danmarks Nationalbank will also join TIPS, which opens up opportunities for payments in Danish krone. At present, however, there is no function activated for being able to make cross-currency payments on the TIPS platform.
In September 2021, the Riksbank took a strategic decision to use the Eurosystem’s platform for settlement of payments, which is known as T2, for large-value payments in Swedish krona. The Riksbank thus intends to replace the current IT platform for RIX with T2 and to investigate the opportunities for this. The decision is partly based on the fact that the payment market is becoming increasingly global. For example, banks are active in several countries, which means that the requirements for harmonisation and joint standards increase. The Riksbank has also taken a strategic decision to join the Eurosystem’s platform for securities settlement, known as T2S.
As several central banks and securities depositories share technical platforms, costs and resources for development, operation and security can be shared among more parties. Sweden, as a small country with its own currency, cannot on its own achieve the same economies of scale that are offered by a system with a larger number of transactions. Platform sharing can also increase security, for instance, with regard to protection against cyber threats. The next stage involves an in-depth analysis of how platform sharing could work in practice. In this work, the Riksbank will have a close dialogue with the participants in the Riksbank's payment system, RIX.