In a landmark agreement, the European Central Bank (ECB) and Norges Bank have announced that Norway will integrate its currency, the Norwegian krone, into the TIPS system (TARGET Instant Payment Settlement) by 2028.
Norway joins Eurosystem’s TIPS
This move positions Norway as the first non-European Union country within the European Economic Area (EEA) to join TIPS, reflecting the growing cohesion in the European financial landscape.
TIPS Beyond the EU
TIPS, a part of the Eurosystem’s TARGET Services, is designed to enable real-time, 24/7 settlement of instant payments in central bank money.
With Norway’s inclusion, the Norwegian krone becomes the fourth currency to be supported by TIPS, following the euro, Swedish krona, and the anticipated addition of the Danish krone in April 2025.
This development marks a significant step in enhancing cross-border payment capabilities within the EEA.
“Norway is the first non-European Union country of the European Economic Area to join one of the Eurosystem’s TARGET Services,” comments Christine Lagarde, ECB President.
“It is an indication of the strengthened economic relations across Europe and the attractiveness of TIPS.”
Benefits for Norway
The integration of Norwegian krone into TIPS will provide businesses and citizens in Norway with seamless access to instant payment capabilities.
This inclusion ensures that payments can be processed securely and efficiently at any time, further aligning Norway’s payment infrastructure with those of its Nordic and European counterparts.
“A well-functioning instant payments solution is an important part of an efficient payment system,” says Ida Wolden Bache, Governor of Norges Bank.
“The agreement with the ECB will ensure that infrastructure for instant payments in Norwegian krone is developed in pace with developments in the Nordic countries and the rest of Europe.”
Beyond adding the Norwegian krone, the Eurosystem plans to implement a cross-currency settlement service within TIPS.
This future enhancement will enable seamless transfers between all participating currencies, including the euro, Swedish krona, Danish krone, and Norwegian krone.
Such functionality underscores the Eurosystem’s vision of fostering interconnected and efficient payment systems across Europe.
Norway’s integration into TIPS not only fortifies its payment infrastructure but also deepens its economic ties with the European Union.
As Europe moves towards more unified financial systems, TIPS serves as a critical enabler of cross-border trade, fostering innovation and economic growth.
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