The Central Bank of Iceland has signed an agreement with the European Central Bank for Iceland to join the Eurosystem’s TARGET Instant Payment Settlement system, or TIPS. From 2028, payments in Icelandic krónur will be settled instantly in central bank money through TIPS, replacing Iceland’s current system for real-time settlement of interbank payments. The move will make the Icelandic króna the fifth currency available in TIPS, alongside the euro, Swedish krona, Danish krone and, from 2028, the Norwegian krone. For users in Iceland, domestic interbank payments, including payments between individuals and between individuals and companies, will run on the Eurosystem infrastructure on a 24-hour, year-round basis. The Central Bank of Iceland also said a domestic contingency solution will be introduced so critical payment services can continue if TIPS becomes temporarily inaccessible.
Central Bank of Iceland2026-06-24
Central Bank of Iceland signs ECB agreement to join TIPS for instant króna settlement from 2028
The Central Bank of Iceland has agreed with the European Central Bank for Iceland to join TIPS, the Eurosystem’s instant payment settlement platform. From 2028, Icelandic króna payments will be settled instantly in central bank money through TIPS, replacing the current domestic real-time interbank settlement system. A domestic contingency solution will also be added for periods when TIPS is unavailable.