The European Central Bank (ECB) has announced new initiatives aimed at improving cross-border payments both within the European Union and internationally.
These efforts will build on the Eurosystem’s existing TARGET Instant Payment Settlement (TIPS) service and include several key actions. One of the main initiatives is the introduction of a cross-currency settlement service within TIPS. This service will facilitate instant payments between different TIPS currencies, settled in central bank money. The currencies initially involved will include the euro, Swedish kronor, and Danish krone.
In addition to the cross-currency service, the ECB is conducting exploratory work to connect TIPS with other fast payment systems, including potential partnerships outside of the EU. This is intended to improve the efficiency of cross-border payments globally.
These measures align with the G20’s goals of making the global payments landscape faster, cheaper, more transparent, and accessible, while maintaining the security and reliability of instant payments. The initiatives also advance the Eurosystem's retail payments strategy, which aims to facilitate payments between European consumers and businesses and non-euro area partners.
In July 2024, the European Central Bank (ECB) reported on progress made in the preparation phase of the digital euro, emphasising modernised payments, privacy, and EU autonomy. The Eurosystem is actively developing a digital euro to align central bank money with contemporary payment preferences and support Europe's financial independence.
This initiative aims to provide a digital retail payment option issued by the ECB and national central banks throughout the euro area, offering widespread accessibility and complementing cash transactions. Beyond convenience, the digital euro aims to enhance monetary sovereignty by reducing reliance on non-European payment providers dominating the market.
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