What is ISO 20022?
There is no doubt that the ISO 20022 standard could prove to be a significant catalyst for some cryptocurrency investors.
ISO 20022 is a standard that will be used by all financial standards initiatives and is expected to launch in November 2022 and be fully implemented by November 2025.
This is a standardization for the exchange of electronic data between financial services in the payments industry. The standard is based on distributed ledger technology, referred to as DLT (or distributed ledger technology).
Banks around the world have already committed to this regulatory framework, which is supported by SWIFT, ECB and the Federal Reserve. Therefore, the standard will be a major catalyst for the crypto sector. As of August 2022, only a few cryptocurrencies are compliant with the standard. Here is a list of those assets:
- Algorand (ALGO)
- Hedera (HBAR)
- IOTA (MIOTA)
- Quant (QNT)
- Ripple (XRP)
- Stellar (XLM)
- XDC Network (XDC)
Given that this new financial system for international payments will replace the existing one, the volume of transactions the new system will process will be something to behold. If even a fraction of all international payments are made through these few ISO 20022 compliant cryptocurrencies, the sheer volume could significantly increase both the market capitalization and value of these altcoins.
Banks and financial institutions around the world are preparing to enter a new era by preparing their payment systems for the transition from SWIFT to the blockchain-backed ISO 20022 standard, a much more structured and data-rich standard for financial messaging.
It is projected that by 2025, ISO will be the global standard for high-value payment systems across all reserve currencies and is expected to service 80% of all transactions, including 87% of transaction value globally.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
