The BIS Innovation Hub (BISIH) Singapore Centre has announced the next phase of Project Nexus, aimed at making instant cross-border payments a reality.
Central banks and instant payment system (IPS) operators from India, Malaysia, the Philippines, Singapore, and Thailand will collaborate with BISIH to move towards live implementation.
Indonesia will continue its participation as a special observer.
As part of its efforts to link its TARGET Instant Payment Settlement (TIPS) with other fast payment systems, the Eurosystem, the monetary authority of the eurozone, has expressed its intention to join Project Nexus.
Launched in November 2018, TIPS enables real-time payments across Europe, facilitating instant transfers between European banks.
Due to its previous involvement in the project, the Eurosystem will hold special observer status.
Currently, over 70 countries have IPS that enable domestic payments to be transferred within seconds at nearly no cost to senders or recipients.
Project Nexus aims to extend this efficiency to international transactions, allowing cross-border payments to reach recipients in under 60 seconds.
This initiative follows a successful 2022 proof-of-concept involving the Eurosystem, Malaysia, and Singapore, along with further collaboration with central banks and IPS operators from Indonesia, Malaysia, the Philippines, Singapore, and Thailand.
Nexus is designed to streamline connections between domestic IPS, enabling a single link to reach all other countries on the network.
The latest 2024 report outlines the governance, business model, and technical architecture for Nexus, along with implementation guides for participants, including ISO 20022 message and API specifications.
Featured image: Edited from Freepik
