The European central bank (ECB), the Eurosystem and the riksbank have reached a co-operation agreement under which Sweden will be able to use the Eurosystem’s Target Instant Payment Settlement, (TIPS) service, the European central bank (ECB) said in a statement on last Friday(April 3).
Under the agreement, electronic payments made in Swedish krona can be settled on Euro system’s instant-payment settlement platform.
Under the agreement, the payment will be settled in May 2022.
The agreement was signed by European central bank President Christine Lagarde, the heads of the 19 central Banks in the euro zone, and Swedish Riksbank President Boris Ingves.
Sweden is one of the most advanced countries in Europe in the use of instant payments, generating 1.5 million payments a day.
Sveriges Riksbank has already decided to adopt a cybersecurity framework developed by the European central bank.
Since November 2018, the Euro area has been using the system to regulate direct payments made in euro. It was originally intended to be able to regulate other currencies.
With the Global Spread of the Coronavirus (COVID-19) outbreak, the world economic outlook remains bleak and fraught with uncertainty. Countries around the world are now focusing on fighting the outbreak and preventing the spread of the virus, which is reducing demand for goods and services in the Eurozone and affecting business confidence and investment.
ECB President Christine Lagarde said the deal was an example of greater co-operation among European central banks in times of crisis.
Note: TIPS – THE European Central Bank launches the TARGET Instant Payment Settlement System, an instant payment service.
TIPS allow money to reach recipients in seconds, 24 hours a day and 365 days a year.
TIPS can meet the growing demand for direct payments and help ensure access to all bank account holders in Europe.By offering ECB currency settlement, TIPS have improved the speed and security of clients’ daily transactions.