Following this announcement, the European Central Bank (ECB) and Norges Bank signed an agreement for Norway to join the Eurosystem’s TARGET Instant Payment Settlement (TIPS) solution. This initiative will make the Norwegian krone (NOK) the fourth currency available for settlement in TIPS, in addition to the euro (EUR), the Swedish krona (SEK), and the Danish krone (DKK), which is scheduled to join in April 2025.
The inclusion of the NOK in TIPS, which is part of the Eurosystem’s TARGET Services, is planned for the first half of 2028 and is expected to enable market participants in the region of Norway to settle payments instantly, around the clock, and in central bank money.
TARGET Services were developed and operated by the Eurosystem, relying on central bank money in order to facilitate transfers between banks, businesses, and individuals. All TARGET Services have multicurrency capabilities.
According to the official press release, Norway represents the first non-European Union country in the European Economic Area to join one of the Eurosystem’s TARGET Services. This is an indication of the overall strengthened economic relations across the region of Europe, as well as how multiple institutions are interested in the benefits provided by TIPS.
Throughout this initiative, Norwegian citizens and businesses will therefore become part of the European community of TIPS service users. In addition, the ongoing work in the process of implementing a cross-currency settlement service in TIPS will allow funds to be transferred between all TIPS currencies, encompassing NOK as well.
At the same time, the agreement with the ECB will ensure that the overall infrastructure for instant payments in NOK is developed in pace with developments in the Nordic countries, as well as with the rest of Europe.
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