By 2023, SWIFT — commonly known as the global money transfer system — will be upgraded to ISO 20022, creating an international messaging system to connect banks.
Cryptos compatible with the new message format will reap great advantages, like the XDC Network which allows FIs to include digital assets as payload in financial messages.
Cryptocurrencies that are Compliant with ISO 20022
ISO 20022 compliant cryptos use messaging protocols that are easily integrated with traditional financial systems, improving interoperability while decreasing errors or discrepancies. This will increase interoperability while decreasing errors or discrepancies.
Some of the world’s best-known cryptocurrencies have already made strides toward meeting ISO 20022-compliance, such as Ripple (CCC:XRP-USD), XDC, Stellar Lumens (CCC:XLM-USD), and Iota (CCC:MIOTA-USD). Ripple actually became one of the first members of ISO standards body, opening up standardization opportunities for distributed ledger technology.
Other ISO 20022-compliant cryptos include Hedera Hashgraph (CCC:HBAR-USD), Quant Network (CCC:QNT-USD), and Algorand (CCC:ALGO-USD). Algorand is a blockchain network designed to provide scalability, security, and decentralization across a range of financial applications – it uses proof-of-stake consensus algorithm with its own native cryptocurrency named ALGO – while others benefit from integration into traditional finance industries and therefore increase in their prices; investors should keep tabs on their assets to see future price movements.
How This Will Impact the Crypto Market
ISO 20022 provides financial institutions with an opportunity to streamline data processing. Furthermore, this standard will facilitate more sophisticated analytics as well as greater compliance with regulatory requirements while simultaneously cutting costs by eliminating manual work and streamlining integration of new services.
However, upgrading requires significant alterations in how firms collect and process data – this will have ripple effects beyond payments and financial messaging platforms, including how risk and accounting systems utilize information for reporting purposes.
Investors should closely track how this move impacts existing and newly issued ISO 20022-compliant cryptocurrencies and tokens to understand its effects. Algorand (ALGO), for example, is compliant with ISO 20022 and offers scalability, security and decentralization through Overledger protocol while featuring its own native cryptocurrency called ALGO; additionally it seamlessly integrates into traditional finance systems thanks to ISO compliance.
Which Cryptos Are Compliant with ISO 20022?
ISO is an international organization that creates standards for numerous industries, such as shipping, weaponry and metallurgy. These industry-specific standards help ensure products and services comply with specific criteria before being shipped out to customers.
According to reports, several cryptos comply with ISO 20022. Ripple’s (CCC:XRP-USD) network is fully compliant with ISO 20022, providing fast and low-cost international wire transfers. Stellar’s focus on connecting financial institutions as well as serving unbanked people makes it an excellent candidate for using ISO 20022. Finally, Algorand (CCC:ALGO-USD) blockchain also works seamlessly with this messaging standard.
Investors should keep an eye out for these five cryptos as they could see significant value increases if this new messaging system gains widespread traction in the financial industry. Fusion between traditional and decentralized finance could increase payments processing speeds and lower bank fees for consumers – potentially increasing value of these five cryptos considerably; with increased interaction between centralized and decentralized finances taking place simultaneously, the crypto market could experience unprecedented change.
How Will ISO 20022 Impact the Crypto Market?
ISO 20022 compliance can help facilitate cross-border payments more cost effectively and ease their adoption and use cases for cryptos while decreasing fraud risks and other issues.
The standard also offers a more structured format for messaging, which makes it easier to screen and assess payment details – something especially beneficial to financial institutions that must detect and block suspicious transactions.
Complying with ISO 20022 can signal that a crypto is ready to integrate into traditional financial systems. For instance, meeting SWIFT requirements could allow it to be added as a bank customer-approved cryptocurrency – providing extra safety when sending decentralized cryptos from bank accounts and also encouraging more banks to enable crypto payments – something particularly helpful in regions with many unbanked citizens.
