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ISO 20022 Compliant Crypto List | cryptopolitan

The ISO 20022 protocol is a standard for the electronic exchange of data between financial services in the payment industry. It is based on DLT (Distributive Ledger Technology) and uses ISO 20022 as its messaging mechanism.

ISO 20022 is a more advanced format based on the XML protocol and the Abstract Syntax Notation One (ASN.1) specification for banking communication, which complies with the ISO 20022 standard for financial messaging. It better reflects current financial activities and transactions, locally, regionally and globally.

Banks around the world have already committed to this global regulatory framework, which supports SWIFT and the Federal Reserve. And as we move into this new quantum financial system, any third party that wants to interact with banks needs to be able to use the ISO 20022 format.

With the financial sector on the same page around the world, there is no doubt that ISO 20022 will be a major catalyst for investors.

How is ISO 20022 changing in 2022?

Banks and financial institutions around the world are entering a new era as they prepare to move their SWIFT message payment systems to ISO 20022, a much more structured and data-rich financial messaging standard.

By 2025, ISO will be the global standard for high- or high-value payment systems in all reserve currencies, handling 80% of transactions and 87% of transaction value globally. The European Central Bank and SWIFT have announced the launch dates for the ISO 20022 standard.

ISO 20022 Compliant Crypto List 1

Image source: Temenos payment center (webinar)

The following cryptocurrencies are ISO 20022 compliant as of this writing:

Each of these cryptos was developed to make global transactions more accessible, and therefore, could comply with the ISO 20022 standard more quickly.

However, as more cryptocurrencies don’t want to be left out of the payments sector around the world and move towards ISO 20022 compliance, this list will only expand.

And the fact that they follow the ISO 20022 standard does not necessarily mean that they are suitable investments…

Ripple is a great example of a crypto with numerous drawbacks compared to benefits, and Helena Margarido encourages you to avoid it. (This is why.)

Hedera is a fascinating penny with a lot of potential that you can learn more about here, and it certainly belongs on your watch list. (These picks were handpicked by our team of experts if you’re looking for pennies that are flash buys.)

What impact will ISO 20022 have around the world?

This worldwide acceptance of similar financial messages is anticipated to significantly influence financial institutions, businesses, and any organization with a stake in the high-value financial and payments industry.

More than 70 countries have adopted ISO 20022 in their payment systems, including Switzerland, China, India, and Japan. And with a reach of more than 200 payment types, it will harmonize formats and data components of different payment methods that previously couldn’t work together.

ISO 20022 is now being used by more than 70 countries, including Switzerland, China, India, and Japan, in their payment systems. With over 200 payment types, it will combine formats and data components from numerous payment techniques that were previously unable to communicate with each other due to differences in standards.

The ISO 20022 standard will apply to domestic, ACH, real-time, high-value and cross-border payments.

ISO 20022 Compliant Crypto List 2

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What banks must do to stay ahead of the competition

SWIFT’s technology change from MT to ISO 20022 will be complete. Banks will need to update their messaging interfaces and test them before November 2022 to ensure they are compatible with the new payment communication standard.

Banks are under competitive pressure to migrate to the ISO 20022 standard, as the general payment industry migration to instant payments makes their existing goods and services vulnerable.

Because ISO 20022 is a more modern and versatile standard than conventional legacy formats, it requires significantly more data volume processing. As a result, banking systems and databases will need to be able to handle these larger volumes at faster speeds for real-time payments, daily liquidity management, compliance controls, and fraud detection and prevention.

Allowing sufficient time for testing so that the syntax and format information are accurate, and migrating the data to all linked payment and clearing systems, is critical. Ideally, the tests should be completed in the second quarter of 2022 at the latest.

Banks must inform their corporate clients about the additional data that can be accessed, as well as how it will be used. Furthermore, those clients must be fully informed and involved in end-to-end testing.

ISO 20022 Compliant Crypto List 3

Image Source: Compact

High Value Payments (HVP) in ISO 20022

To establish a roadmap towards standardizing large-value payments and real-time gross settlement (RTGS), SWIFT, global central banks and market infrastructures have established the HVPS+ Market Practices Working Group.

“By unifying messaging standards across HPVs, payment system participants will be able to benefit from efficiencies and lay the groundwork for new services.” Michael Knorr, director of payments and liquidity management for financial institutions at Wells Fargo Bank.

To stay on top of these high-value payment systems, you’ll need a solution to keep track of them. HVP systems are crucial to international finance, so monitoring these important transfers of value with the right performance monitoring and management solution is critical.

RTGS is changing the global financial landscape

ISO 20022 Compliant Cipher List 4

Image Source: Compact

It is difficult to keep up with new technologies, legal changes and the introduction of new international payment standards. With ISO migration just around the corner, organizations can turn data into insight to ensure payment systems around the world are running securely and efficiently.

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