Sweden’s central bank, the Riksbank, is urging domestic banks to actively engage in advancing instant cross-currency payments through the Target Instant Payment Settlement (Tips) system.
This initiative, in collaboration with the European Central Bank (ECB) and Danmarks Nationalbank, aims to facilitate instant payment settlements across euros, Swedish kronor, and Danish kroner, making cross-currency payments faster, safer, and more efficient.
Call for Collaboration
- Swedish Banks’ Role: The Riksbank is inviting banks to participate in the design discussions and testing of the Tips cross-currency service.
- Deputy Governor Per Jansson: Highlighted the global push, led by the G20, to improve the security, efficiency, and affordability of cross-currency transactions. Jansson emphasized that the success of Tips depends on coordinated efforts between central banks and market participants.
Future Expansion
- Norges Bank Joins in 2028: Plans to include Norwegian kroner will broaden Tips’ capabilities.
- Global Reach: The ECB is exploring integrations with similar international instant payment systems to support currencies outside of Europe.
Next Steps for Banks
- The Riksbank has set a 28 February 2025 deadline for Swedish banks to signal their interest by signing a Letter of Intent, ensuring their involvement in shaping and testing the system.