Which payment system is identified as the RTGS in the Eurozone?

The correct answer is TARGET2 because it serves as the real-time gross settlement (RTGS) system for the Eurozone. TARGET2 facilitates the transfer of funds in euros between banks and other financial institutions across the member countries of the European Union. Being an RTGS system, it processes transactions on a real-time basis, providing immediate settlement and reducing systemic risks associated with payment delays.

TARGET2 is an essential component of the European financial infrastructure, ensuring efficient and secure payments within the Eurozone. It allows for high-value transactions to be settled instantaneously throughout the banking network. This feature is particularly important for minimizing risks and enhancing liquidity management for participants.

The other systems mentioned, such as Fedwire, CHATS, and CNAPS, serve similar functions in their respective regions but are not applicable to the Eurozone. Fedwire operates in the United States, CHATS is for Hong Kong, and CNAPS is the Chinese RTGS system. Thus, while they play crucial roles in their local economies, none of them serve the purpose of being the Eurozone's RTGS.