ISO 20022 Compliant Crypto May Be The Future Of Payments
With the help of blockchain technology, banks and financial institutions are getting ready to switch their interconnected payment systems from using SWIFT messages to the newer, more structured, and data-rich ISO 20022 financial messaging system.
ISO 20022 is described by the International Organization for Standardization (ISO) as “a set of rules and procedures that specify how to use ISO messages. ISO 20022 messages are similar to transactions in a database. These message elements are intended to be filled with the data needed to generate messages and transmit them via ISO 20022 network services wherever those messages are required.”
The goal of this standard is to “Provide interoperable interactions across financial institutions, their market infrastructures, and their end-user communities.”
The financial industry has been in the process of phasing out the use of the older, more-structured SWIFT messages since at least 2012 since SWIFT announced plans to develop an ISO 20022-based alternative standard, known as “Global Payment Innovation” or GPI. GPI is an electronic payment standard that will be based on the ISO 20022 data standards. SWIFT says that banks and other organizations will be able to speed up their payments and cut costs by using GPI. The new format is intended to act as a bridge between older interbank transfer systems and newer faster payment methods like those offered by Visa Inc. and MasterCard Inc.
The adoption of ISO 20022 standard cryptocurrency identities will revolutionize the industry. The ISO 20022 message structure will allow banks to share all data associated with a crypto transaction with each other, enhancing security while improving transparency and trust, which will further improve accessibility of cryptocurrencies from one end of the globe to another.
Cryptocurrency wallet addresses will also be standardized further by adding additional message elements, allowing consumers and businesses to communicate transactions completely transparently and securely with each other.
ISO 20022 is a more sophisticated and adaptable standard, hence it requires a higher data processing capacity. Thus, existing banking systems and databases will need to be able to handle larger volumes at quicker rates for real-time payments, daily liquidity management, compliance controls, and fraud detection and prevention in order to keep up with cryptocurrencies and associated technologies.
And while we’re on the topic of virtual currencies, which ones are poised to benefit from the current economic climate? Let’s start by taking a look at the top ISO 20022-compliant digital currencies:
There are now seven digital currencies that have been certified as ISO20022 compliant.
- Quant
- Ripple
- Stellar
- Hedera
- IOTA
- XDC Network
- Algorand
Conclusion:
The ISO 20022 messaging standard will facilitate the development of a secure, transparent, secure and reliable payment infrastructure. Cryptocurrency adoption is also undergoing rapid growth thanks to the increased regulatory scrutiny worldwide. The adoption of ISO 20022 standard cryptocurrency identities will revolutionize the industry.
ISO 20022 is enabling cryptocurrency payments through ISO 20022’s data standards for transactions and other related fields. This will allow banks to process payments in real-time, which is an important step towards increasing speed and reducing processing costs associated with
source: https://www.linkedin.com/pulse/iso-20022-compliant-crypto-may-future-payments-altaji-cdaa-/
