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ECB: Cross-Border instant payments are coming!

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"The TIPS SLA requires processing of 99.9% of all instant payments in up to 5 seconds. This processing time is split into two blocks: 1. Validation of the payment transaction, reservation of funds and forwarding of the transaction (steps 2 and 3 in the diagram on page 5) 2. Validation of the reply from the Beneficiary Participant, settlement and sending of the settlement confirmation (steps 5, 6 and 7 in the diagram) • Assuming a (normal) distribution of processing times, the majority of payments will be processed in under 5 seconds by TIPS"

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Haven't gone through the documents, but I think it's likely this is internal to the EU and, if using blockchain, it would be a private one with XRP not being involved.

From Ripple perspective, it's still positive as the cross-border perspective likely always looked at the EU as one rather than multiple countries.

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"The sole purpose of TIPS is to settle instant payments. A TIPS account cannot serve as a liquidity pool to collateralise the activity that takes place within the ACH for payments between its participants. The technical account in the ASI6 real-time model on the other hand is especially tailored to fulfil this function. Therefore ASI6 will still be necessary after TIPS."

From my previous link under Can Settlement of Ancillary Systems take place in TIPS?

 

Not sure if this statement means they cant provide what xrp can

Edited by mvenneau

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5 minutes ago, kuyu said:

Some concerns expressed by participants: • PSPs may need to reassess their IP projects that are already underway

• Costs for network connectivity could act as a dampener, especially for smaller markets

• Liquidity for instant settlement cannot be used for instant clearing

Again is this liquidity issue something they can improve? Or is this stating they need xrp to fill that role? Im confused

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Cool, but:

  • Not Ripple Related
  • It's not really cross border payments since it will work in SEPA are, so it's actually always € to move. The interesting part is when different currencies move around.

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