Once home to the mighty Vikings of old, Sweden has come a long way and in the modern era, it has now become the latest country to join the European Central Bank’s (ECB) instant payments platform. In an effort to ease electronic payments, the agreement is basically for ECB to be able to offer Sweden access to the awe-inspiring Eurosystem TARGET Instant Payment Settlement (TIPS), and do so in Swedish currency. This greatly supports the nation’s instant payment service, as announced on Friday, April 3rd.
According to the release, Sweden is one of, if not Europe’s most advanced countries when it comes to instant payments usage, with large daily volumes amounting to an average of 1.5 million per day.
The said deal between ECB, the Eurosystem and Sveriges Riksbank actually won’t take place until 2022 but it’s a very viable and hopeful venture which will not only allow providers of payment services to transfer and settle their funds in real-time, but it will also settle the payments in central bank money 24 hours a day, 7 days a week. Euro’s instant payments project which launched way back in 2018 was created to be able to settle other currencies and offer convenient services such as these. The agreement was signed by ECB President Christine Lagarde, as well as Sveriges Riksbank Governor Stefan Ingves and lastly, the governing body of the Eurosystem’s 19 national central banks.
Coincidentally, the deal actually came into place a day immediately after the ECB extension of the timeline for review of its monetary policy due to the widespread coronavirus pandemic.
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