ECB and Brazil's Central Bank in Talks to Connect TIPS and Pix Instant Payment Networks
ECB and Brazil’s Central Bank in Talks to Connect TIPS and Pix Instant Payment Networks #
The European Central Bank has confirmed it is conducting a preliminary investigation into linking its TARGET Instant Payment Settlement (TIPS) platform with Brazil’s Pix system, which would be the first international expansion of the Brazilian instant payments network.
The ECB’s confirmation came in response to a Reuters inquiry, following initial reporting by Brazilian newspaper Folha de S. Paulo, which cited an ECB document describing the exploratory talks. Two people with direct knowledge of the discussions separately confirmed their existence to Reuters. Brazil’s central bank declined to comment on the record.
According to FintechNews Switzerland, both institutions are targeting an operational pilot by June 2028, though that timeline depends on the talks continuing to progress. Brazil’s central bank has assigned nine internal departments to work on the project.
Such a link would change how payments move between the two economies. Cross-border transfers currently pass through correspondent banks, intermediary institutions that route money between financial systems in different countries, often with delays and fees. A direct connection between TIPS and Pix would allow payments to flow between the eurozone and Brazil without that infrastructure.
Pix, launched by Brazil’s central bank in November 2020, has become one of the world’s most widely used instant payment systems, handling billions of transactions annually and reducing card and cash use within Brazil. TIPS is the Eurosystem’s settlement rail for instant euro payments, operating around the clock.
The ECB had previously identified the Brazil-euro corridor as a potential pathway for TIPS expansion, describing Pix as a “currency corridor under exploration.” Brazil’s central bank has signed information-sharing agreements on Pix with 65 foreign counterparts.
The talks also have a geopolitical context. Major emerging economies have grown more interested in reducing reliance on the U.S. dollar in international transactions. A direct eurozone-Brazil payments corridor that bypasses dollar-denominated correspondent banking would fit that pattern.
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