Sweden's central bank is calling on banks to join in the ongoing work to enable instant cross-currency payments within Europe via the Target Instant Payment Settlement (Tips) system.
The ECB, the Riksbank and Danmarks Nationalbank have been working together for some time on the initiative to make instant payments possible between euros, Swedish kronor and Danish kroner.
The Riksbank is inviting Swedish banks to participate in the initiative, joining discussions on the design of the TIPS cross-currency service and actual testing of it.
Per Jansson, deputy governor of the Riksbank, says: “The Riksbank has long been working to make it easier to make payments between different currencies. In addition, the G20 has a global goal of making cross-currency payments more secure, more efficient and cheaper. The work on Tips cross-currency is an important step towards making this a reality but it also requires cooperation between central banks and the market. We are therefore keen for Swedish banks to express their interest in participating in this work."
In 2028, Norges Bank is planning to join Tips, opening up the possibility that Tips cross-currency may also support payments in Norwegian kroner in the future. At the same time, the ECB is exploring the possibility of enabling payments between currencies outside Europe by linking Tips with other similar international instant payment systems.
The Riskbank is encouraging Swedish banks to express their interest in participating in the cooperation by signing a Letter of Intent with a deadline for replies of 28 February 2025.