ECB Links Up With Brazil's Pix to Boost Euro Payments

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

As part of the G20 Cross-Border Payment Roadmap, the ECB will collaborate with the Central Bank of Brazil to examine the feasibility of interlinking their systems. This connection could enable real-time payments in euros and potentially other currencies, such as the Brazilian real.

The potential link between TIPS and Pix represents a low-cost alternative to SWIFT settlements, which rely on US dollar-controlled networks. The ECB also plans to establish connections with India's Unified Payments Interface (UPI) and the Swiss Interbank Clearing Instant Payments system.