ISO 20022 is a single standardization approach to be used by all financial standards initiatives. The new standardization is set to officially begin in November 2022 and be fully implemented by November 2025.
The ISO 20022 protocol is a standard for electronic data interchange between financial services in the payment industry. It is based on DLT (distributive ledger technology) and uses ISO 20022 as its messaging mechanism.
ISO 20022 is a more advanced format (based on the XML protocol and the Abstract Syntax Notation One (ASN.1))specification for bank communication), which meets the ISO 20022 standard for financial messaging. Currently, there are only a handful of cryptocurrencies that are ISO 20022 compliant and will be integrated into this system.
Banks worldwide have already committed to this worldwide regulatory framework, which backs SWIFT and the Federal Reserve. And as we move toward this new quantum financial system, any third party that wants to interact with banks must be able to use the ISO 20022 format.
With the financial sector on the same page worldwide, there’s no question that ISO 20022 will be a significant catalyst for crypto investors.
There are many cryptocurrencies that will be integrated into this new financial system, referred to as ISO 20022 compliment cryptocurrencies and there is much speculation these cryptocurrencies will soar in price once the standard is implemented.
What are the Top ISO 20022 Crypto Projects?
There are only a handful of cryptocurrencies that are considered to be ISO 20022 compliant. These include:
- Ripple (XRP)
If you are interested in learning more about each of these ISO 20022 compliant cryptocurrencies and their function within this new financial system, read this article:
How is ISO 20022 changing in 2022
Banks and financial institutions worldwide are entering a new era as they gear up to switch their payment systems from using SWIFT messages to the blockchain-supported ISO 20022 - a much more structured and data-rich financial messaging standard.
In 2025, ISO will be the global standard for high- or large-value payment systems in all reserve currencies and is projected to handle 80% of all transactions, including 87% of transaction value globally. The European Central Bank and SWIFT have announced the ISO 20022 go-live dates for the standard.
What impact will ISO 20022 have?
It is anticipated that this worldwide acceptance and adoption of ISO 20022 will significantly influence financial institutions, companies, and any organization with a stake in the finance and large value payments sector not to mention the anticipated impact this new standard will have on the adoption and utilization of cryptocurrencies.
Already, over 70 countries have adopted ISO 20022 in their payment systems. This includes Switzerland, China, India and Japan. With over 200 payment types in scope, the plan is to harmonize formats and data components from different payment methods which did not previously work together, unifying the entire worldwide financial economy.
ISO 20022 is set to bring faster and cheaper payment transactions with increased transparency and reliability through the use of the blockchain.
Given that this new international payments financial system is set to replace the existing international payments financial system, the volume of transactions this new system will handle will be unlike anything the cryptocurrency space has ever seen.
If all international payments are put through these few (ISO 20022 compliant) cryptocurrencies, the sheer volume of transactions could boost both the market capitalization and market value of these cryptos considerably.
Learn to Profitably Invest in Crypto
Cryptocurrencies are considered to be at the cutting edge of technology, merging the traditional ideals of cash and digital currency. The latest move to a New Financial System by adopting cryptocurrencies for cross-border and international payments by the international financial community is one of the biggest changes the financial system has seen in 50 years.
Whether it is the international banks, institutional investors, or retail investors, tremendous wealth is being invested and created in this new form of digital currency.
As an investor, cryptocurrencies can offer the ability for life-changing wealth. However, to be successful in these highly volatile markets, it's necessary to be well aware of the market cycle, trends and significant events taking place within the cryptocurrency space.
If you would like to learn more about the cryptocurrency space and new opportunities within this space such as low-cap gems (+100x returns), subscribe to our free newsletter below to learn more.