- Ripple, Stellar (XLM), and IOTA’s alignment with ISO 20022 lays the groundwork for a prospective integration with SWIFT, offering a monumental boost to the billion-dollar cryptocurrency market.
- SWIFT, recently honored as the best cross-border payment provider, is due to implement ISO 20022 by November 2025, creating a window of opportunity for these crypto networks to further infiltrate mainstream financial channels.
As a response to the increasing need for interoperability among financial institutions, the ISO 20022 was introduced to establish international standards for electronic message exchange. In 2020, Ripple declared its membership with the ISO 20022 Standards Body, with Stellar (XLM) and IOTA also reportedly part of this consortium. This strategic alignment sets the scene for potential integration with SWIFT, the esteemed cross-border payment provider.
What do consumers and SMEs value most when moving money around the world? To find out, we spoke to thousands of them across eight key markets. We wanted to understand what makes a great payments experience and what contributes to one that leaves them feeling frustrated.
It's a… pic.twitter.com/auPUKCIdmr
— Swift (@swiftcommunity) June 8, 2023
Stephen Lindsay, the business lead for Swift’s strategic platform, commended the industry’s collaborative spirit in a recent statement, advocating for payment standardization. Lindsay identified the ISO 20022 as a solution to the inefficiencies and heightened costs that resulted from the outdated payment format.
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Previously, the variances in payment messages across regions created bottlenecks, triggering inefficiencies and cost escalation. The ISO 20022, with its superior data quality, addresses these issues, enabling efficient resource allocation for businesses, improving fraud detection, and fostering product relevancy.
Lindsay further expounded on the benefits of this transition, emphasizing the resilience and efficiency of a data-rich standard compatible with virtually all payment systems worldwide. Messages could now be re-routed if required, ensuring straight-through processing to mitigate outage risks and minimize delays.
The ISO 20022, in Lindsay’s view, is the most adaptable financial messaging standard developed so far, capable of assimilating seamlessly into the continually evolving financial landscape. As new technologies emerge and economic shifts occur, it ensures the consistency of financial transactions.
This initiative resonates with the aspirations of market participants and international bodies such as the G20, who understand the significance of efficient cross-border payments in global commerce. ISO 20022 stands as a central pillar in achieving a more inclusive and effective payments ecosystem, aligning with the G20’s roadmap for enhancing international transactions.
SWIFT, recently celebrated as the best cross-border payment provider at the MEA Finance 2023 Annual Banking Technology Awards, announced plans to adopt ISO 20022 in March 2023. The plan entails transitioning all messages to ISO 20022 by November 2025, a move that could pave the way for other crypto networks to follow in the footsteps of Ripple, IOTA, and XLM.
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