Sweden’s central bank is urging banks to collaborate on the ongoing initiative aimed at facilitating instant cross-currency payments within Europe through the Target Instant Payment Settlement (TIPS) system.
The European Central Bank (ECB), the Riksbank, and Danmarks Nationalbank have been working together to enable swift payments between euros, Swedish kronor, and Danish kroner. The Riksbank invites Swedish banks to join discussions on the design and testing of the TIPS cross-currency service.
Per Jansson, deputy governor of the Riksbank, stated: “The Riksbank has long been striving to simplify payments across different currencies. Furthermore, the G20 has set a global objective to enhance the security, efficiency, and affordability of cross-currency payments. The TIPS cross-currency initiative is a significant move toward achieving this goal, but it requires collaboration between central banks and the market. We are eager for Swedish banks to indicate their interest in participating in this initiative.”
Looking ahead, Norges Bank plans to join TIPS in 2028, which could pave the way for TIPS cross-currency to support payments in Norwegian kroner. Additionally, the ECB is investigating the potential to link TIPS with other international instant payment systems to enable payments between currencies outside Europe.
The Riksbank encourages Swedish banks to show their interest in this collaboration by signing a Letter of Intent, with responses due by February 28, 2025.