While the project is not revolutionary, it will enhance and modernize the services offered by TARGET2. The new system features the ISO 20022 messaging standard (as in T2S and TIPS), a centralised liquidity management that will make it more cost-effective and efficient,5 and can facilitate payments in several currencies, if other central banks decide to join the system.
A third example is the creation of the Eurosystem Collateral Management System (ECMS), a multi-year project that started in December 2017 and is expected to go live in April next year. The ECMS will replace the current fragmented and decentralised structure for the management of collateral – de facto a patchwork of domestic systems.