Today Cryptocurrency is the most trending topic and a trading chain in the market. Many of you reading this article must be interested in cryptocurrency or are involved in crypto trading somehow. But as much as the market is trending and new, there are many updates and developments taking place in the crypto industry. So, the latest development is ISO 20022. You must be wondering what this is. So, without any delay, let’s get to know about this.
Are you all ready to know about ISO 20022? Then, let’s get started.
ISO 20022 Crypto
ISO 20022 is an international standard for exchanging electronic messages between financial institutions via SWIFT, the Society for Worldwide Interbank Financial Telecommunication is the main financial network banks across the world use. ISO 20022 will dramatically change how banks communicate with each other by increasing the amount of information that can be communicated and improving interoperability.
Along with this, the migration from SWIFT to ISO 20022 will drastically impact the crypto industry. This is especially with the coins, which will comply with standards and may be less rapidly adopted into the traditional financial system. Along with this, if large-cap cryptocurrencies such as ETH or Bitcoin get integrated into the SWIFT system and are given official ISO members, then this could be radically changing the way crypto and fiat currency ecosystems coexist.
Timeline of SWIFT ISO 20022 and ISO 20022 and the Federal Reserve
MX/ISO 20022 mandatory adoption is intended to occur in several stages. The High-value, cross-border payments in the European Union will be the first transition to ISO 20022 in November 2022. This will particularly involve payments of the Target2 system, a real-time financial settlement system used by Central Banks in the Eurosystem.
SWIFT believes that the current timelines are met by 79% of high-value payments by volume, and 87% of high-value payments by value will utilize the ISO 20022 messaging system by 2023.
ISO 20022 Coins and Cryptocurrencies
Since we have given you a good idea about ISO 20022, it is time to discuss ISO coins and Cryptocurrencies. So, let’s have a look at them.
1. Stellar Lumens (XLM)
It is a Member of the ISO 20022 Standards Body, and just like the ISO Coin XRP, it has been designed as a bridge between the crypto and the flat world. Its specific focus is on cross-currency conversion for individuals instead of institutions.
As per the developers, the XLM can process up to 3,000 transactions per second, However, real-life transaction processing times have been historically much slower.
2. Ripple (XRP)
ISO 20022 Ripple is a Member of the ISO 20022 Standards Body, and it is designed to be the bridge between the crypto and the flat world it has a variety of purposes which includes cross-border settlements, and the XRP can currently process approximately of about 1,500 transactions, per second.
3. Iota (IOTA)
This is an ISO 20022 Crypto, a centralized blockchain ledger intended to handle the IoT, which is the Internet of Things. It is believed by many that the network has a lot of potential, and it has also faced criticism because of its security laws, centralization, and a high number of hacks and attacks, which it has suffered over the last several years.
4. XinFin (XDC)
It is ISO 20022 compliant, and XinFin is an Ethereum Virtual Machine (EVM) that is compatible with the delegated proof-of-stake blockchain it intends to function as a digital asset network for enterprises by combining private and public blockchains with interoperable smart contracts. XinFin offers up to 2,000 transactions per second, and its finality is in as little as two seconds.
5. Cardano (ADA)
It is rumored to be compliant with ISO 20022, and Cardano is a proof-of-stake, decentralized blockchain network that co-founder of Ethereum Charles Hoskinson founds. It is also currently the world’s largest proof-of-stake blockchain and its native currency is ADA.
6. Quant (QNT)
It is a complaint of ISO 20022 coins, and the protocol of QUANT is designed to solve the issues of interoperability between the major blockchains like Ethereum, Bitcoin, and Ripple via the Overledger interoperability network, whose intention is to connect all the blockchains via one comprehensive operating system.
7. Hedera Hashgraph (HBAR)
It is rumored to be compliant with the ISO 20022 coins, and Hedera Hashgraph is the distributed Ledger platform that is similar to a blockchain, but it operates somewhat differently. Hedera Hashgraph intends to overcome many of the limitations of the traditional blockchain, and it can perform about 10,000 transactions per second (with some reporting speeds up to 500,000 transactions per second) along with a high level of security.
It also does not use miners like blockchains for transaction validation; instead of that it utilizes a feature which is referred to as a directed acyclic graph for the sequence of transactions without splitting them into blocks. Its native cryptocurrency of it is HBAR.
ISO 20022 for Beginners
Folks, as we have already mentioned earlier about ISO 20022 coins and its variety of cons and cryptocurrencies, still, to put it in simple terms- ISO 20022 is simply a more detailed type of financial messaging which takes place between the banks and financial institutions for preventing frauds, and also to interoperate more smoothly. This is just a more secure form of financial communication that will ensure that no financial crimes take place, and the ISO 20022 coins and cryptocurrencies are a safe and secure way of dealing with the new ISO 20022 in the world of cryptocurrency.
Conclusion
That’s all, folks. I hope the article helped you get all the information you needed.
