ECB Eyes Link with Brazil's Pix for Faster EU-Brazil Payments

The European Central Bank (ECB) is exploring ways to link its TARGET Instant Payment Settlement (TIPS) platform with Brazil's national rapid payment network, Pix. This move aims to facilitate faster and cheaper international payments between Europe and Brazil.

As part of the G20 Cross-Border Payment Roadmap, the ECB will examine the feasibility of connecting TIPS with Pix. The two institutions will assess technical, operational, legal, and business considerations in collaboration with each other.

The potential link would enable faster and lower-cost instant payments for both retail and institutional users in Europe and Brazil. Currently, TIPS settles real-time payments in euros, Swedish krona, and Danish krone, but it can also be adapted to use multiple other currencies, potentially allowing the inclusion of Brazilian reais.

The combined EU-Brazil system could represent an alternative to SWIFT settlements, reducing dependence on US dollar-controlled networks. The move would support the internationalization of the Euro, a key aspect of the European Commission's strategy since January 2021.