Denmark completed over Easter weekend the migration of their currency on TIPS (TARGET Instant Payment Settlement) and T2. As regards TIPS, Denmark is the second country outside the Euro area starting to use Eurosystem's platform after Sweden, which migrated in February 2024. As far as T2 is concerned, Denmark is the first one bringing their currency on the system where they will settle monetary policy operations as well as other critical transactions such as money market transactions. This makes this step an historical achievement.
TIPS is an instant payment settlement system in euros, Swedish kronor and Danish krone that was entirely developed and managed by Banca d'Italia on behalf of the Eurosystem to allow payment service providers to settle instant payments in central bank money. After Sweden and Denmarik, other non-Euro countries are getting ready to migrate to the pan-European platform for instant payments. Specifically, Norway has already signed an agreement to join TIPS in the next future.
T2 is the real-time gross settlement (RTGS) system developed and operated by the 4CB (Banca d'Italia, Bundesbank, Banque de France e Banco de España) on behalf of the Eurosystem. Central banks and commercial banks can submit payment orders in euro and in Danish krone to T2, where they are processed and settled in central bank money, i.e. money held in an account with a central bank.
