EU-BRAZIL Investment Dialogue

BC and ECB evaluate interconnection between Pix and European instant payment system

The Central Bank of Brazil (BC) and the European Central Bank (ECB) initiated a joint study this Thursday, September 24, to verify the feasibility of connecting Pix to the Target Instant Payment Settlement (TIPS), a platform that processes instant payments in the euro area. The initiative is still in a preliminary phase with no defined deadline for completion, but it reveals interesting expectations.

The assessment conducted by the two monetary authorities covers operational, legal, and also commercial dimensions of the eventual integration, which demonstrates the intention to map not only the necessary technological infrastructure, but also the implications for payment flows between companies and consumers.

A direct connection between Pix and TIPS tends to reduce transaction costs and the settlement time for remittances and international purchases, factors that surpass private agreements between Brazilian financial institutions and foreign partners. The model has already been adopted in transactions with countries like Argentina, Chile, France, and Portugal.

For trade between Brazil and the European Union, greater agility and predictability in payment settlement can represent a relevant competitiveness gain for exporters and importers, by reducing currency conversion costs and accelerating the execution of the sale and the receipt of funds.

Read more at: https://scc10.com.br/economia/pix-pode-ser-interligado-a-sistema-de-pagamentos-europeu-iniciativa-avaliam-bcs/