cheap settlement of payments. 10 the aim is that an institution wishing to become a member of rixrtgs will not need to be a member of rixinst or vice versa. if we add the tips platform to rix, it will thus be possible for financial institutions to settle payments in central bank money around the clock. how would tips affect the swedish payment market? if the riksbank decides to use tips to provide a settlement service 24 / 365, most private individuals and companies will not notice any difference in the short term. however, the institutions participating in rixinst will need to adapt their message formats and processes to the regulatory framework applying for instant payments in large parts of the rest of europe. as with all other harmonisation, there will be a balance between a possible need for tailor - made national solutions and the profits that can be reaped from full participation in the eu ’ s single market. of course there may be advantages if a market “ does its own thing ”, but in the long run i believe that sweden has a lot to gain in adapting to the rest of the eu in this respect. sweden is ahead of its european neighbours in the journey towards a cashless society, and swedish banks and fintech companies are well - equipped to continue launching innovative payment services. 10 as far as monetary policy is concerned, it is only the participant ’ s net position with regard to the riksbank that is important. if a participant in rix borrows, say, sek 10 billion in rixrtgs and invests the same amount in its account in rixinst the net position with regard to the riksbank and thus the participant ’ s interest expenditure, will be zero. 7 using the same technical platforms as most of the rest of europe will, i believe, make it easier for swedish payment service providers to establish themselves in europe. and in the same way it will become simpler for foreign companies to compete in sweden. it is also probable that it will become easier to make instant cross - currency payments in the future if the central banks use the same technical platform to settle payments. what happens next? during the spring, my colleagues on the executive board and i have discussed the riksbank's future role in the payment infrastructure. my baseline in these discussions was that sweden – like most other countries – has long had a model where the banks have settled payments in risk - free accounts in the central bank. this has been important in preserving the

stability and credibility of the payment system. now that the payment market is moving towards larger, more numerous and more important payments outside of rix normal opening hours, the riksbank needs to modernise the services it offers so that central bank money remains the norm when financial institutions settle payments. my colleagues have essentially expressed similar views. last week we therefore decided to contact the ecb to initiate discussions on an agreement that would make the swedish krona available for settlement on tips. an absolute requirement that we have in these discussions is that the security surrounding tips must correspond to the expectations in swedish legislation. it is still too early to say when tips could be available for the swedish krona, but if it all works out, i am hoping it will be in 2021. when the riksbank supplies a settlement service that is available 24 / 365 our expectation is that the rix participants settling instant payments will use the platform offered by the riksbank. but we will proceed with caution and support the private solution that is available, bir, until tips is introduced and all conditions for using it are in place. during the implementation period the riksbank will make sure to have a close dialogue with the market and be responsive to views and wishes on how tips can be made available to the swedish krona. we will return to the exact forms for such a consultation later in the autumn. 8