Initially, the cross-currency service is implemented for the currencies participating in TIPS, i.e. the Danish krone, the Swedish krona and the euro. The project will make it possible for a payer to initiate his payment in, for example, Danish kroner, which the payee can immediately receive in euros or Swedish kronor. The service could further be expanded to include other currencies onboarded to TIPS in the future. In addition, the decision also serves as a foundation to explore the possibility of connecting TIPS with instant payments platforms outside of the EU.
The project supports the strategic goals set out in the G20 roadmap to create a faster, cheaper, more transparent and accessible global payment system, and at the same time support a secure and efficient settlement of instant payments.
At the beginning of October, Danmarks Nationalbank hosted an information session about the project for representatives from the financial sector. Danmarks Nationalbank will continue the dialogue with the sector on how both consumers and businesses can access services that offer faster and cheaper payments between currencies.
Click here to read Governor Ulrik Nødgaard’s speech at the TIPS cross-currency event at Danmarks Nationalbank.