Cryptocurrency is gradually being accepted and embraced by financial institutions and central banks. One cryptocurrency, Hedera Hashgraph (HBAR), has taken the lead in implementing the ISO 20022 standard, which is compliant with cryptocurrencies.
The financial world is undergoing a major shift with the imminent implementation of ISO 20022, a unique standard that will revolutionize global payments. Developed by the International Organization for Standardization (ISO), this protocol promises a secure and standardized framework for exchanging financial messages across borders. Over 70 countries, including Switzerland, China, India, and Japan, are preparing to adopt ISO 20022 into their payment systems, which will bring unprecedented harmonization and efficiency to cross-border transactions.
Cryptocurrencies that are compliant with ISO 20022 are gaining legitimacy in the financial services sector. Hedera Hashgraph (HBAR), Stellar (XLM), and Cardano (ADA) are positioning themselves as leaders in this transformative era.
Hedera Hashgraph (HBAR) is at the forefront of implementing the ISO 20022 standard. Hedera is a decentralized public network that uses the Hashgraph consensus algorithm to revolutionize various industries and enable developers to create scalable, secure, and fair decentralized applications (dApps) and services. HBAR, the platform’s native cryptocurrency, is a multipurpose asset that facilitates transactions, ensures network security through staking, and participates in governance decisions.
Stellar (XLM) is another important player in the ISO 20022-enabled cryptocurrency space. Stellar’s core strength lies in its ability to facilitate fast and inexpensive cross-border transactions while promoting financial inclusion on a global scale. The XLM token uses the Stellar Consensus Protocol, an algorithm that enables fast transaction confirmations without the need for energy-intensive mining. Lumens (XLM), the native currency of the Stellar network, plays a crucial role in enabling efficient cross-border transactions and supporting asset tokenization.
Cardano (ADA) stands out as an exemplary illustration of ISO 20022 blockchain technology that adheres to regulations. Cardano aims to provide a secure and scalable platform for developing decentralized applications and smart contracts. The platform emphasizes scalability, sustainability, and interoperability. Through its innovative proof-of-stake consensus protocol, Ouroboros, ADA holders can contribute to decentralization and governance while earning staking rewards. Cardano’s focus on rigorous research and academic collaboration ensures a reliable and sustainable blockchain that can be utilized across industries.
The implementation of ISO 20022 will have a transformative impact on various players in the financial ecosystem, including financial institutions, corporations, market infrastructure providers, and technology companies. The standard will cover more than 200 payment types and aims to ensure consistent formats and data components, bridging the communication gaps that previously hindered interoperability.
Financial institutions will have the opportunity to improve the efficiency and transparency of cross-border transactions, while corporations will benefit from faster payments and enhanced analytics. Market infrastructure and technology providers will play a crucial role in facilitating the adoption and integration of ISO 20022, leading to innovation and standardization in the entire sector.