- Cryptocurrencies like Ripple (XRP), Hedera (HBAR), and Cardano (ADA) are embracing ISO 20022 compliance, aligning with international standards, and positioning themselves for significant relevance in the emerging financial landscape.
- ISO 20022, a globally recognized protocol for secure and standardized financial messaging, is likely to also replace the aging SWIFT system.
Cryptocurrencies such as Ripple (XRP), Hedera (HBAR), Cardano (ADA), Quant (QNT), Stellar (XLM), Algorand (ALGO), and Verge (XVG) are gearing up for a significant transformation in the financial sector as they adopt ISO 20022 compliance.
The ISO 20022 crypto-list includes digital currencies and tokens that conform to the International Organization for Standardization (ISO) standard 20022. These ISO 20022-compliant cryptocurrencies shall play a key role in the emerging financial landscape. There is speculation that their value may experience a significant upswing with the full implementation of this standard.
ISO 20022 is a globally recognized protocol designed to provide a secure and standardized method for exchanging financial messages among entities in the payment industry. It is also likely to replace the aging SWIFT financial messaging system, which has served as the backbone for global payments in the banking and financial sector for over 50 years.
Moreover, this standard effectively addresses the needs of financial service organizations seeking to establish a universally accepted messaging language. This shared language further enables them to streamline their business processes and foster seamless collaboration with their partners on a unified platform.
Crypto companies, banks, and stock brokers are likely to reap substantial benefits with the adoption of ISO 20022.
Cryptocurrencies That Are ISO 20022 Compliant
A cryptocurrency that aligns with the ISO 20022 standard has the potential to receive endorsement from a central bank, simplifying the use of cryptocurrencies for payments. The integration of ISO-compliant crypto identifiers shall bring about a transformative shift in how cryptocurrencies are employed.
Moreover, if ISO were to assign official codes for cryptocurrencies, including prominent ones like Bitcoin and Ether (ETH), these digital assets would become a part of the databases of major financial institutions such as Visa and MasterCard. This integration could further open up new opportunities for these cryptocurrencies in the broader financial ecosystem. Here are three such cryptocurrencies that are part of the ISO 20022 standard.
- Ripple: Ripple (XRP) operates as both a cryptocurrency and a payment protocol, with a primary emphasis on global financial transactions. It employs the Ripple Protocol Consensus Algorithm (RPCA) to provide swift and energy-efficient validation. The platform also facilitates cross-border payments and remittances within the banking sector, offering a viable alternative to Swift. XRP acts as a bridge currency within the Ripple network, enabling seamless conversion between fiat currencies.
- Hedera (HBAR): Hedera Hashgraph (HBAR) is a decentralized public network that leverages the Hashgraph consensus algorithm, known for its high scalability, security, and fairness. Hedera serves as a platform for decentralized applications (dApps) across diverse industries. It distinguishes itself from conventional blockchains by adopting a directed acyclic graph (DAG) structure, which enables rapid consensus, leading to fast transactions with minimal energy consumption.
- Cardano: Cardano (ADA) is a research-driven blockchain platform developed to support secure, scalable decentralized applications (dApps) and smart contracts. It addresses common blockchain limitations by prioritizing scalability, sustainability, and interoperability. Cardano comprises two distinct layers: the Cardano Settlement Layer (CSL), dedicated to transaction processing, and the Cardano Computation Layer (CCL), designed for executing smart contracts.
