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ISO 20022 and Cryptocurrency: A Pivotal Standard for the Future

ISO 20022 is revolutionizing the financial landscape by establishing a universal standard for communication between financial institutions. While diverse coding languages currently plague international transactions, seeks to harmonize this chaos by introducing a common language—Extensible Markup Language (XML). This standardization has garnered support from influential organizations like and the Federal Reserve Board in the United States. Discover how ISO 20022 is poised to reshape the world of cryptocurrency.

ISO 20022 Adoption: A Global Shift

The adoption of ISO 20022 standards is gaining momentum worldwide. In the United States, the Federal Reserve Board has announced its intent to embrace this standard by the end of 2023. SWIFT, the Society for Worldwide Interbank Financial Telecommunications, plans to facilitate the use of ISO 20022 by its members starting in November 2022. This adoption holds significant implications for the future interoperability of central bank digital currencies (CBDCs).

What Does It Mean for Cryptocurrencies?

ISO 20022 compliance is often misunderstood in the context of cryptocurrencies. It doesn't imply that a cryptocurrency itself adheres to the standard; instead, it signifies that the financial systems leveraging the cryptocurrency comply with ISO 20022 standards. Notably, five cryptocurrencies meet ISO 20022 requirements, making them suitable for utilization once SWIFT adopts the format. These cryptocurrencies are (XRP), (XLM), (XDC), (ALGO), and (IOTA). Additionally, three others, (HBAR), (QNT), and Cardano (ADA), are rumored to be in the process of compliance.

Cryptocurrencies and ISO 20022 Compliance

  1. Ripple (XRP): Ripple, the company behind XRP, joined the ISO 20022 Registration Management Group in 2020, reflecting its commitment to the standard. and XRP enable efficient cross-border payments and instant settlements, with institutions utilizing Ripple's on-demand liquidity (ODL) service to streamline international transactions.
  2. XinFin (XDC): XDC, a Singapore-based Proof-of-Stake blockchain, is ISO 20022 compliant. It offers enterprises connectivity to a blockchain network using the XDC protocol and ISO 20022 compliant messaging. XinFin has partnered with R3, an influential consortium of financial institutions, to list dApps on the Corda Marketplace, aligning with ISO 20022 compatibility.
  3. Algorand (ALGO): While Algorand hasn't explicitly stated its ISO 20022 compliance, its association with the Digital Payments Institute underscores its alignment with the standard. The institute recognizes ISO 20022 as pivotal for global payments infrastructure.
  4. Stellar Lumens (XLM): Like Algorand, Stellar hasn't officially declared ISO 20022 compliance. However, its partnership with IBM, an ISO 20022-compliant entity, and its use of Stellar Blockchain in IBM World Wire reinforce its compatibility.

About ISO 20022

ISO 20022, established by the International Organization for Standardization (ISO), defines a global standard for electronic payment information exchange among financial institutions. It regulates the structure of business models, business process descriptions, scheme designs, message formats, and documentation publication processes. SWIFT serves as the authorized body for ISO 20022 standard registration and maintenance. Introduced in 2004, ISO 20022 is progressively embraced by the global financial community and extends its influence across various industries.

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ISO 20022's implementation represents a pivotal moment for both traditional finance and the cryptocurrency realm. As leading cryptocurrencies align themselves with this global standard, they position themselves for enhanced interoperability and wider adoption in international transactions. The future holds exciting prospects for ISO 20022-compliant digital currencies, making them integral players in the evolving financial landscape.

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