The list of cryptos compatible with the ISO 20022 standard

Currently, the reality of a great “reset” is growing. All banks will have to adapt to the new ISO 20022 standard. Implementation begins in November 2022, but full adoption is planned for 2025.

The ISO 20022 protocol, built on DLT technology (Distributed Ledger Technology) is a framework for the electronic exchange of data between different financial institutions. The ISO standard will therefore be applied in the international payments sector. All players wishing to interact with banks will have to comply with this new standard. The idea is to harmonize computer language and create a new standardization of exchanges.

Banks around the world are subject to this new regulatory standard, supported by SWIFT and the US Fed. A new global financial system is then emerging, the contours and new rules of which it is important to understand.

Crypto-assets are not spared from the implementation of this new standard. So let's see the list of cryptos compatible with the ISO 20022 standard.

What is ISO 20022?

ISO 20022 is a new standard for the exchange of electronic messages between different financial entities. It was the International Organization for Standardization which introduced the idea in 2004. The aim being to give the financial sector a sort of common language for payment systems.

You should know that there are many formats and new standards are replacing the most outdated ones. So, ISO 20022 replaced ISO 15022. And, ISO 15022 replaced ISO 7775, etc.

Why is this important?

Today, there are different standards and message formats in today's financial world. Depending on the geographic areas and sectors of activity, this or that standard will be used.

The problem with having several standards is the complexity that exists when two banks for example with two different languages try to communicate with each other. This involves longer processing times and necessarily higher costs.

So, the idea of ISO 20022 is to provide a framework for a common language for financial messaging between all banks. Today, there are 200 different payment types. The languages are therefore not uniform for all monetary exchanges in the world. These different formats had the main impact that the whole could not communicate together.

This new standard is intended to be more structured and more advanced from a technological point of view. Better yet, cross-border barriers will then be removed, which will facilitate international business transactions.

When will ISO 20022 come into force?

It is in 2025 that the ISO 20022 standard will be implemented in the global payment system. Some countries like Australia will adopt the implementation sooner. It is estimated that it will then process more than 80% of transactions. The European Central Bank as well as SWIFT are already working on the migration. The SWIFT transition to ISO 20022 is underway until at least November 2022.

Moreover, it is the SWIFT company which administers and manages the ISO 20022 standard. It is therefore SWIFT which publishes the guidelines and technical frameworks that must be followed.

What about the ISO 20022 standard for cryptocurrencies?

Given the ever-increasing adoption of cryptocurrencies, cryptocurrencies cannot be excluded from the global payment system. Some cryptocurrencies have already been designed almost from the start with the knowledge of the implementation of the ISO 20022 standard.

This is for example the case of Stellars Lumens and Ripple, which, since their development, have sought to "collaborate" with the current banking system. Even if some are not completely adapted to the ISO 20022 standard, the implementation will be "simplified".

crypto standard 20022 — Source: https://altcoininvestor.com/top-iso20022-crypto/

Cryptocurrencies that comply with the ISO 20022 standard to date:

Stellar Lumens (XLM)
Hedera Hashgraph (HBAR): It is a cryptocurrency close to Phantom (FTM) and it is certainly a cryptocurrency to watch closely.
XDC Network (XDC)
IOTA (MIOTA)
Ripple (XRP)
Quant (QNT)
Algorand (SOMETHING)

You can buy these cryptocurrencies at a lower cost on Binance. Please note that this is in no way financial advice. It is too early to predict an increase in the use of these cryptocurrencies, even if they are compatible with the new standard.

What impact will the ISO 20022 standard have in the world?

Due to its unifying function, we can think that this will have a positive influence on monetary exchanges across the different financial institutions. Businesses and organizations will then be able to make payments more easily.

It was actually inevitable that banks would finally align to create a single format for financial messaging. Likewise, banks which have not yet accepted the ISO 20022 standard will necessarily have to adopt it to be consistent with the global system.

The advantages of the new ISO standard are numerous for banks. Banking databases will be able to handle larger volumes with higher speeds as well. Real-time payments, daily cash management and fraud prevention will be improved.

Regarding the cryptocurrencies mentioned above, this will be a simpler way to collaborate with the global banking system. It is then likely that these cryptocurrencies will also be used by partner commercial banks.

Case to follow (very) closely therefore…

Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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