SNB: instant payments, under review Eurozone connection
Keystone-SDA
The Swiss National Bank (SNB) and the European Central Bank (ECB) are examining the possibility of linking the instant payment systems of the two areas.
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The two entities have started an exploratory phase to connect the IP service and the SIC system with the Eurosystem’s TARGET Instant Payment Settlement (TIPS) service, the SNB indicated on Monday. The aim is to ascertain the feasibility and economic viability of such an approach. This phase will last until 2026.
Instant payments give individuals and companies the opportunity to carry out domestic account-to-account transactions, which are executed immediately and settled in a matter of seconds, 24 hours a day, every day of the week, including public holidays. The shorter settlement chains and ready availability of funds reduce risks and offer significant advantages to individuals, businesses and commercial banks.
A link between the two systems would allow the execution of instant cross-currency payments, thus enabling payments from one currency area to be credited to an account in the other currency area within seconds, the SNB explains. “The initiative contributes to the overall goal of making cross-border payments faster, more convenient, transparent and accessible,” the bank concludes.
Adapted from Italian by DeepL/jdp
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