ECB Ponders Link with Brazil's Pix Payment System

The European Central Bank (ECB) is exploring the possibility of linking its TARGET Instant Payment Settlement (TIPS) platform to Brazil's Pix, a national rapid payment network. The move aims to enable faster and lower-cost instant payments for both retail and institutional users in the two regions.

According to the ECB, this connection could facilitate over €87 billion ($100 billion) in bilateral trade between the EU and Brazil by 2025. Brazil is currently the EU's tenth-largest partner, and this integration would also support the internationalization of the Euro.

The TIPS platform already settles real-time payments in euros, Swedish krona, and Danish krone, but it can be adapted to use multiple other currencies, potentially allowing the inclusion of Brazilian reais. This could represent an alternative to SWIFT settlements, reducing dependence on U.S.-controlled networks.