Study advances to connect Pix with the European instant payment system.
The Central Bank of Brazil (BCB) has taken a significant step toward the international expansion of Pix. On Thursday (24), a joint assessment was launched with the European Central Bank (ECB) to examine the possibility of interconnecting Brazil’s popular instant payment system with Target Instant Payment Settlement (TIPS), the equivalent infrastructure in the eurozone.
The initiative, aimed at deepening the efficiency of financial transactions between Brazil and the eurozone, focuses on analyzing the technical, operational, legal, and business aspects required for such integration. The expectation is that this connection could facilitate cross-border payments, making them faster and more accessible.
The primary goal is to facilitate financial and economic flows between the two regions. The interconnection between Pix and TIPS has the potential to reduce costs and processing times for international remittances and purchases, allowing funds to be made available in the local currency within seconds.
The evolutionary agenda of Pix and the global vision
This collaboration is part of the Central Bank of Brazil‘s ongoing strategy for the evolution of Pix. The idea is to connect the Brazilian system with other instant payment infrastructures, both multilateral and in other jurisdictions, expanding its reach and utility.
The initiative aligns with the G20 objectives for improving cross-border payments. Lower costs, increased transaction speed, expanded access to financial services, and improved transparency are shared goals driving this cooperation.
“Considering the significant economic and financial flows between Brazil and the eurozone, the interconnection between Pix and TIPS could contribute to faster, more efficient, and lower-cost cross-border payments between the two jurisdictions.”
Impact and next steps for global payments
The success of this interconnection could revolutionize how Brazilians and Europeans conduct financial transactions. Agility and cost reduction would benefit both individuals and businesses, boosting trade and economic relations.
The feasibility analysis will determine the concrete next steps for integration. If successful, this connectivity could serve as a model for future integrations with other instant payment systems around the world, solidifying Pix‘s role as a global financial instrument.
