Agreement on the Implementation of an Instant Payment System in the Western Balkans

Purpose
The Banca d’Italia, along with other central banks from Albania, Bosnia-Erzegovina, Kosovo, Macedonia del Nord, and Montenegro, has signed a Letter of Intent to launch a project for implementing an instant payment system in the Western Balkans. This initiative aims to establish a digital payment platform that enables instant transactions across different currencies within the participating countries.

Effects on Industry
The introduction of this instant payment system is expected to have a significant impact on the financial industry in the Western Balkans. It will enable faster and more efficient transactions, reducing costs and increasing the overall efficiency of financial services. Additionally, the system’s integration with existing European payment platforms may facilitate smoother cross-border transactions between Europe and the region.

Relevant Stakeholders
The stakeholders affected by this development include the governments and central banks of Albania, Bosnia-Erzegovina, Kosovo, Macedonia del Nord, and Montenegro, as well as the Banca d’Italia. The target audience also includes financial institutions, businesses, and consumers within these countries, who will benefit from faster and more secure payment transactions.

Next Steps
The next steps involve the implementation of the instant payment system, which is expected to be operational within 18 months. This will involve setting up the necessary infrastructure, testing the system, and finalizing the integration with existing European payment platforms. The participating countries are also expected to continue their efforts in integrating with the EU’s financial system.

Any Other Relevant Information
The Letter of Intent represents a significant step towards the Western Balkans’ integration into the EU’s financial system. This development demonstrates the commitment of these countries to adopt and implement modern digital payment systems, which will improve the overall efficiency and security of their financial services.