ISO is an international organization which sets international standards across many fields, such as finance. They also develop standards for products like bicycles, shipbuilding and weapons production.
SWIFT recently upgraded their messaging system to comply with ISO 20022, creating new opportunities for cryptocurrency companies that adhere to this new standard.
How does it work?
The ISO 20022 standard aims to streamline data transfers within the global payments ecosystem, with hopes of cutting costs, automating processes and strengthening security while at the same time helping financial institutions provide more readable data and enhance client experiences.
The new ISO standard will also speed up and streamline cross-border money transfers, becoming widespread by 2025. This represents a substantial change for global financial institutions that will alter how they communicate among themselves.
Cryptos that adhere to the new ISO standard may appreciate in value if banks choose them as payments options, such as Ripple Network’s XRP token which facilitates fast and cost-effective cross-currency payments via RippleNet.
XLM is a cryptocurrency compliant with ISO 20022-standards that aims to expedite international money transfers faster. This protocol uses standard messaging language to streamline data flow between payment systems – potentially cutting costs while increasing security and efficiency.
This new format is more sophisticated than traditional formats, enabling faster processing of large volumes of data – making it suitable for real-time payments, daily liquidity management, compliance checks and fraud detection.
This transition will benefit both traditional and crypto-focused financial entities, with investors tracking price movements of ISO-compliant currencies and tokens as they comply with ISO 20022 standards, such as Ripple (XRP), Xinfin Network (XDC), Algorand (ALGO). Furthermore, SWIFT’s original system will likely transition over to complying with this new standard by 2022.
Algorand is one of the newest blockchains on the scene and features numerous unique advantages. It can process thousands of transactions per second with instantaneous finality and minimal transaction fees while remaining highly secure and decentralized.
Algo, the native cryptocurrency of the network, can be traded across various exchanges. It was designed as a decentralized store of value with an equitable coin rewards system and consensus technique in mind.
Algorand platform provides an answer to the blockchain trilemma by prioritizing speed, security, and scalability – factors which have made it a favorite among enterprise applications such as Central Bank Digital Currency (CBDC) projects. Furthermore, NFT trading, an emerging trend in cryptocurrency market can increase liquidity while decreasing costs for sellers.
The ISO 20022 protocol seeks to revolutionize how global payments work. By providing data-rich transactions and simplifying compliance with anti-money laundering (AML) and countering financing of terrorism (CFT) regulations, businesses can make informed decisions with real-time data.
Cryptos that upgrade their blockchains to meet the new standard will likely see their prices increase, such as Ripple (XRP). Ripple bridges different currencies quickly to transfer money between them quickly while supporting cross-chain interoperability.
Cardano (ADA), another ISO-compliant cryptocurrency, uses a peer-to-peer network for transaction processing. Its Tangle network eliminates miners for near infinite scaling with lower fees; additionally its distributed ledger provides security and immutability. Cardano’s widespread adoption by banks is expected by 2023.
XDC is a blockchain protocol with the purpose of improving international money transfers. The network uses delegated proof-of-stake permission consensus to validate transactions, while financial institutions can communicate and approve payments across borders with ease. Furthermore, an XDC coin serves as the fuel for this network, enabling sending and verifying approved transactions easily.
SWIFT, international central banks and market infrastructures have joined forces to form the HVPS+ Market Practice Work Group in order to set out a roadmap for standardizing high-value payments and real-time gross settlement (RTGS). It will bring together formats and data elements previously incompatible while helping reduce implementation costs of new systems.