Institutions will evaluate technical, operational, legal, and business aspects related to the interconnection
SÃO PAULO, 24 Sep (Reuters) – The Central Bank informed this Thursday that it began with the European Central Bank (ECB) a phase of evaluating the viability of interconnection between Pix and TARGET Instant Payment Settlement (TIPS), the Eurosystem’s instant payment settlement service.
According to the note, the institutions will assess technical, operational, legal and business aspects related to the interconnection of the two public payment infrastructures.
‘Considering the significant economic and financial flows between Brazil and the euro area, the interconnection between Pix and TIPS could contribute to faster, more efficient, and lower-cost cross-border payments between the two jurisdictions,’ the Central Bank said.
According to the monetary authority, the initiative is part of Pix’s evolving agenda and the Central Bank’s efforts to interconnect the Brazilian instant payments system with similar multilateral infrastructures and from other jurisdictions, which could enable international remittances and purchase transactions, with funds available in local currency in a few seconds.
‘The interconnection of instant payment systems has the potential to reduce costs, increase speed, broaden access, and improve the transparency of cross-border transactions,’ it explained.
Reuters reported earlier this month that the Central Bank and ECB were examining a possible integration between their instant payment systems.
