The Riksbank and the ECB to explore cross-currency instant payments
News The Riksbank and the ECB will explore the feasibility of using the TIPS platform to accommodate instant settlement of payments across European currencies, such as the Swedish krona and the euro. Providing cross-currency instant settlement services in central bank money under European governance could form an important contribution to the modernization of the European retail payments.
The Riksbank will introduce its RIX-INST service in May 2022. RIX-INST will provide financial institutions with instant settlement services in Swedish krona employing the TIPS platform. In its current adaptation, settlement on the TIPS platform is limited to transactions where the originator and beneficiary hold accounts in the same currency. The Riksbank and the ECB will explore the feasibility of augmenting the TIPS platform to accommodate instant settlement of payments across European currencies, such as the Swedish krona and the euro. The initiative is launched against the backdrop of growing demands for pan-European integration and ongoing work in the international community to address the paucity of fast, efficient and accessible cross-border payments.
The study will involve interaction with market participants.