The ISO 20022 crypto-list is a compilation of digital coins and tokens that conform to the standards set by the International Organization for Standardization (ISO) 20022. These ISO 20022-compliant cryptocurrencies are expected to experience a significant increase in value once the standard is implemented.
One of the main challenges in transacting with digital currencies is the lack of identifiers that banks can use to differentiate token transactions. While banks can easily distinguish between traditional currencies like USD and AUD, it is more difficult for them to differentiate between digital currencies like Bitcoin and Bitcoin Cash.
ISO, a non-governmental organization based in Geneva, Switzerland, develops international standards for various industries. When an ISO standard is established, financial institutions worldwide adopt it. Therefore, having an ISO code for Bitcoin (BTC) could greatly facilitate its mainstream adoption.
ISO 20022 is an international protocol that provides a standardized and secure method for exchanging financial messages between organizations in the payment industry. It will replace the outdated SWIFT financial messaging system currently used by banks and financial institutions for global payments.
ISO 20022 is crucial because it enables financial services organizations to create a globally accepted messaging language. This language allows them to implement their business processes and collaborate with their partners using a universal platform.
The adoption of ISO 20022 offers several benefits for the crypto industry. Compliance with this standard ensures interoperability and seamless communication between financial systems and institutions. It also enhances regulatory compliance, making it easier for cryptocurrencies to align with regulatory requirements and engage with traditional financial institutions.
Furthermore, ISO 20022 integration enables cryptocurrencies to be used in centralized settings by global central banks and financial institutions. This integration can provide greater liquidity, increased transaction volumes, and wider acceptance of cryptocurrencies.
Migrating to ISO 20022 requires careful consideration of factors such as the readiness of payment infrastructure, compliance with regulatory requirements, data security, implementation costs, program governance and support, strategic benefits, training and resource requirements, client education, and management of new data and data fields.
Although there is no official certification authority for ISO 20022 compliance, the ISO 20022 Compliance Checklist provided by the ISO 20022 Registration Authority (RA) and Technical Support Group (TSG) helps organizations assess their adherence to the standard and ensure conformity. Compliance with ISO 20022 offers benefits such as standardization and interoperability, enhanced regulatory compliance, integration with central banks and financial institutions, streamlined cross-border payments, and improved trust and transparency.
The ISO 20022 Crypto List includes cryptocurrencies that comply with the ISO 20022 standard. These compliant coins and tokens can be considered legitimate currencies by centralized banks and can be included in the database tables of top financial services providers like Visa and MasterCard. Currently, there are nine cryptocurrencies certified as ISO 20022-compliant, including Quant (QNT), Ripple (XRP), Stellar (XLM), Hedera (HBAR), IOTA (MIOTA), and XDC Network (XDC).
In conclusion, the ISO 20022 standard and its adoption in the crypto industry offer numerous benefits, including increased interoperability, regulatory compliance, integration with traditional financial institutions, streamlined cross-border payments, and improved trust and transparency. The ISO 20022 Crypto List provides assurance that compliant coins and tokens meet specific standards, paving the way for their broader adoption in the financial system.Algorand (ALGO) is a blockchain platform that offers a highly scalable and secure environment for building decentralized applications (dApps) and facilitating efficient blockchain transactions. Its proprietary consensus mechanism, Pure Proof of Stake (PPoS), allows for fast transaction confirmation times and high decentralization. Unlike traditional proof-of-work systems, Algorand’s PPoS ensures equal opportunity for all participants to propose and validate new blocks, eliminating the need for resource-intensive mining.
The ALGO token serves as the native cryptocurrency of the Algorand network, enabling participants to actively participate in block validation and earn rewards. Algorand’s focus on scalability, low transaction fees, and rapid confirmation times makes it suitable for various applications, including financial services, decentralized finance (DeFi), and asset tokenization. The platform’s commitment to delivering a secure and efficient blockchain infrastructure has positioned it as a contender in the competitive blockchain space, addressing scalability and transaction speed challenges while fostering innovation.
Cardano (ADA) is another blockchain platform aiming to provide a secure and scalable infrastructure for dApp development and smart contracts. Developed through a research-driven approach, Cardano focuses on scalability, sustainability, and interoperability to overcome the limitations of existing blockchain technologies. It consists of two layers: the Cardano Settlement Layer (CSL) for handling cryptocurrency transactions and the Cardano Computation Layer (CCL) for executing smart contracts. The platform utilizes the Ouroboros proof-of-stake consensus algorithm, allowing participants to earn rewards through staking ADA tokens.
ADA serves various purposes within the Cardano network, including transactions, staking, and participation in platform governance. Cardano aims to enhance blockchain scalability through its layered architecture, fostering innovation and adoption in finance, identity management, and supply chain sectors. The platform emphasizes peer-reviewed research and academic collaboration to offer a robust and future-proof blockchain platform.
Verge (XVG) is a privacy-focused cryptocurrency that prioritizes user anonymity and confidentiality in transactions. It utilizes privacy protocols like Tor and I2P to obfuscate transaction data and IP addresses, enhancing user privacy and security. Verge’s primary goal is to provide a decentralized and private digital currency that enables individuals to conduct transactions without revealing their identities or transaction details.
These cryptocurrencies are adapting to the ISO 20022 standard to make global transactions more accessible. However, compliance with ISO 20022 does not necessarily guarantee suitability as an investment. Ripple, for example, has numerous disadvantages compared to benefits and is advised against by Helena Margarido.
Verge recently achieved a significant milestone by becoming fully ISO 20022-compliant. This achievement positions Verge as the 9th cryptocurrency to adopt the ISO 20022 standard and the first decentralized Internet of Things (IoT) community-run currency to do so. Collaborative efforts with partners like Voice Life and BlockDudes played a crucial role in this accomplishment. Voice Life introduced the concept of passive income for Fractional Non-Fungible Token (F-NFT) holders through the XVG coin, while BlockDudes facilitated the seamless implementation process.
The ISO 20022 standard will undergo significant transformations in 2024, including the implementation of the Swift Transaction Manager (TM) and the introduction of new rules for bypass and aborts. By 2024, corporate readiness for ISO 20022 is expected to reach a crucial stage. The coexistence of SWIFT and ISO 20022 for cross-border payments and reporting (CBPR+) began in 2023 and will continue until November 2025. This coexistence period allows financial institutions to migrate to the new standard at their preferred pace.
Implementing ISO 20022 can present challenges for financial institutions, including standard complexity, addressing differences in market infrastructures, upgrading legacy systems, and establishing the right migration timeline. However, with a clear long-term strategy, comprehensive impact analysis, robust project management, effective internal communications, and future-proof technology solutions, these challenges can be overcome.
The integration of ISO 20022 with the Quantum Financial System (QFS) represents a strategic move towards a unified global financial ecosystem. The QFS leverages advanced technologies like quantum computing, quantum-secure blockchain encryption, and quantum cryptography, making ISO 20022’s compatibility crucial for seamless integration.
Overall, the ISO 20022 standard will revolutionize the financial landscape and improve international money transfers. Its adoption by cryptocurrencies and financial institutions worldwide will enhance efficiency, reduce fraud, and pave the way for a streamlined and sophisticated global payment system.
