ECB and Banco Central Do Brasil Explore Cross-Border Link Between TIPS and Pix

The European Central Bank and Banco Central do Brasil are exploring a potential connection between Europe's TIPS instant-payment infrastructure and Brazil's Pix network. This link could create a new real-time payment corridor between Europe and Latin America, making cross-border payments faster, cheaper, and more accessible.

Pix has gained significant traction in Brazil since its introduction in late 2020, with over 170 million people using the service - approximately 91% of the country's adult population. Consumers can make immediate transfers, while merchants have a lower-cost alternative to conventional payment methods.

The ECB is already pursuing interoperability initiatives, including exploring connections between TIPS and India's Unified Payments Interface. Within Europe, TIPS is expanding its currency coverage, with the euro, Swedish krona, and Danish krone already settled through the platform.