By 2025 ISO 20022 will be the global standard for payment systems for all financial institutions including banks.
ISO 20022 is the standard protocol for digital data interchange in the payment industry. Its DLT (Distributed Ledger Technology) based protocol (similar to blockchain) which uses ISO 20022 as a messaging mechanism.
By 2025, the protocol is expected to become the future standard for sending and receiving payments in the financial system. At the moment, banks and established financial institution uses SWIFT, a secure messaging system that allows them to send and receive encrypted payments across borders.
Since ISO is aligned with DLT, it automatically makes some of the cryptocurrencies compliant with the new protocol. The ISO 20022 crypto list is shared below –
- Stellar Lumens (XLM)
- Ripple (XRP)
- Hedera Hashgraph (HBAR)
- IOTA (MIOTA)
- XDC Network (XDC)
- Algorand (ALGO)
- Quant (QNT)
It will not be surprising to see more coins being added to the list by the time we reach 2025. Following the new standard may not necessarily make the coin a good investment.
It is also to be noted that the adoption is coming at the time of CBDC pilot launch by central banks of various nations. The Reserve Bank of India and Federal Reserve in the US are among the central banks that have already launched CBDC trials in 2022.
The People Bank of China is leading the race with CBDC trials launched in 2020. It is likely that the proposed ISO standard may not be for cryptocurrency but for CBDC adoption by the central banks on a global scale.
At the time of writing, over 70 countries including China, India, Switzerland and Japan have adopted ISO20022 standard. However, the complete migration will occur by 2025.
The system will be equipped for sending and receiving cryptocurrencies but will the central banks permit it? That’s a million dollar question to ask.
As observed on the ground level, the institutions are primarily focused on using CBDC than going for crypto adoption. Only time and sentiments will decide which side will win in the next two years.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.