The ISO 20022 Crypto List features the cryptocurrencies expected to become part of this new financial system, including Ripple. Experts predict its value will surge once this new financial framework comes into place.
The standard will also alter how TradFi institutions send messages across the SWIFT network, potentially harming some DeFi projects but benefitting those that embrace its adoption.
What is ISO 20022?
ISO 20022 is an international standard that will reduce the costs associated with money transfers between banks, as well as enable more information to be sent in one message, making it easier for banks to analyze data, provide efficient services to clients and reduce fraud while speeding up high value payments.
ISO standards serve as an international language that facilitates global systems and agencies communicating across formats with one another, regardless of format differences. Utilizing modern, mainstream XML technology, these standards are easy to implement resulting in reduced errors, faster processing times and lower costs.
Investors looking for cryptos that will capitalize on this shift should look towards ISO 20022-compliant digital currencies, including Ripple (XRP) – one of the two largest fintech firms and its currency; Stellar (XLM); and Algorand (ALGO). Rumor has it that their value may surge once ISO 20022 adoption is complete.
ISO 20022 marks a monumental step forward for the financial industry and many believe that its arrival will usher in an era of fiat and crypto interoperability. With its standard message format designed to improve processing times and ensure accuracy when sending between banks, ISO 20022 also reduces risks and maintenance costs by decreasing manual data entry as well as fraud protection capabilities; screening specific fields for suspicious activity.
ISO 20022 will have an immense effect on cryptocurrencies, as it will enable them to better interact with traditional financial systems. Ripple, whose native cryptocurrency is XRP, has already achieved ISO 20022 compliance; other cryptocurrencies are working toward this goal such as Stellar Lumens (XLM), which aims to facilitate cross-border payments and serve the unbanked population. It is widely speculated that their value will increase after this announcement.
Stellar network seeks to streamline international wire transfers by offering low-cost, fast transactions. Lumens (XLM), the native cryptocurrency of Stellar Network, serves as a bridge currency that converts payments between countries into their native currencies with its built-in protocol processing these conversions quickly thereby decreasing transaction costs and processing times significantly.
Stellar stands out from many crypto projects by prioritizing financial inclusion over corporate partnerships and profits. Their mission is to connect people worldwide to fast, low-cost financial services that empower them to overcome poverty and maximize their potential.
ISO 20022 could make it easier to integrate with existing systems and increase its potential as a global money transfer network. Furthermore, partnership with SWIFT could allow larger cryptocurrencies such as bitcoin (BTC) and ether (ETH) to integrate more readily with the system, decreasing operating costs significantly while making adoption of new technology simpler without disrupting daily operations.
ISO 20022 provides for an easier integration of crypto into traditional financial systems by standardizing messaging formats across systems. This will increase transparency while decreasing fraud risk and money laundering risks; banks will also benefit from being able to screen more readable payment data end-to-end and make informed decisions based on this information.
The Algorand blockchain was created by MIT computer science professor Silvio Micali as an alternative to Ethereum that attempts to solve the trifecta of scaling, security, and decentralization.
Hedera Hashgraph is a distributed ledger using an innovative consensus algorithm for supporting decentralized applications (dApps). As an ISO 20022 compliant blockchain solution, Hedera Hashgraph opens opportunities for fintech innovators by lowering transaction costs and speeding international transactions; thus encouraging banks to adopt decentralized apps more frequently. Furthermore, Hedera Hashgraph streamlines integration into existing financial systems while improving interoperability between them all.