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The Riksbank, Sweden’s central bank, has called on Swedish banks to actively participate in the ongoing development of instant cross-currency payments within Europe through the Target Instant Payment Settlement (Tips) system. This collaborative effort, involving the European Central Bank (ECB), the Riksbank, and Danmarks Nationalbank, aims to facilitate instant payments between euros, Swedish kronor, and Danish kroner.
To accelerate the project, the Riksbank is inviting Swedish banks to engage in discussions regarding the design of the Tips cross-currency service and participate in its testing phases.
Per Jansson, Deputy Governor of the Riksbank, emphasized the significance of this initiative, stating:
“The Riksbank has long been working to make it easier to make payments between different currencies. Additionally, the G20 has set a global objective to make cross-currency payments more secure, efficient, and cost-effective. The work on Tips cross-currency represents a crucial step toward achieving this goal, but success depends on collaboration between central banks and the market. We are eager for Swedish banks to show their interest and contribute to this important work.”
Looking ahead, Norges Bank plans to join the Tips initiative by 2028, which could expand the system’s capabilities to include instant payments in Norwegian kroner. Concurrently, the ECB is exploring opportunities to link Tips with other international instant payment systems, potentially enabling cross-currency payments beyond Europe.
The Riksbank is encouraging Swedish banks to formalize their interest in this cooperative effort by signing a Letter of Intent, with a response deadline set for 28 February 2025.
This initiative underscores the growing global emphasis on improving cross-border payment systems, paving the way for faster, more secure, and cost-efficient transactions across currencies.
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