ECB Explores Linking TIPS with Brazil’s Pix for Efficient Payments
- The European Central Bank (ECB) is evaluating the feasibility of linking its TARGET Instant Payment Settlement (TIPS) platform with Brazil’s Pix network to enhance cross-border payments.
- This initiative is part of the G20 cross-border payments roadmap, aiming to create a low-cost alternative to SWIFT, reducing reliance on U.S. dollar networks.
- Brazil ranks as the EU’s tenth-largest trading partner, with over €87 billion in bilateral trade projected by 2025.
- The ECB plans further integrations with India’s Unified Payments Interface (UPI) and Swiss Interbank Clearing Instant Payments system to expand global euro payment reach.
The ECB is collaborating with the Central Bank of Brazil to assess technical, operational, legal, and business considerations for linking TIPS and Pix systems. This connection aims to facilitate faster and lower-cost instant payments between the EU and Brazil for both retail and institutional users.
A combined EU-Brazil payment system could provide an alternative to SWIFT settlements, enhancing euro internationalization while supporting economic flows between these regions. (Source)
