ECB, Brazil Explore Linking TIPS With Pix
The ECB and Brazil’s central bank are exploring a technical link between the Eurosystem’s TIPS and Brazil’s Pix, with a pilot possible in 2028 to ease cross-border payments.
The European Central Bank and Brazil’s central bank are carrying out a preliminary investigation into linking the Eurosystem’s Target Instant Payment Settlement (TIPS) service with Brazil’s instant-pay system Pix. Officials involved in the inquiry indicated a pilot could begin in 2028.
The review is examining the technical and operational feasibility of an interconnection that would allow faster transfers between Europe and Brazil for businesses and individuals. The inquiry focuses on how payments would be routed, settled and recorded across the two systems.
The work is part of a broader Eurosystem effort to reduce friction in cross-border instant payments. The ECB has begun work on potential links between TIPS and India’s Unified Payments Interface and is exploring other real-time payment rails in Asia. TIPS currently supports settlement in the euro, the Swedish krona and the Danish krone; the Norwegian krone is scheduled to join in 2028 and the Icelandic króna is expected to follow.
Pix, operated by Brazil’s central bank, is used by about 170 million people, roughly 91% of Brazil’s adult population. Brazil’s central bank has signalled it is willing to expand Pix’s scope to enable integration with foreign payment systems.
The investigation will need to address settlement flows, interoperability standards, anti-money-laundering checks, central bank liabilities and how local currency conversions are handled. No detailed technical designs, legal agreements or timelines have been published.
The prospect of international links has drawn scrutiny from the U.S. government, which described the central bank-backed service as “unfair” and cited concerns about potential effects on U.S. firms and the international role of the dollar when justifying new trade tariffs on Brazil.
Regulators and central banks emphasise the work remains exploratory. Further announcements on pilot design, participating institutions and the regulatory framework are expected as the investigation proceeds.
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