ISO 20022 Standard Attracting Crypto Projects as Nine Assets Join the Movement
Verge has recently become the latest cryptocurrency project to be included in the ISO 20022 standard, although it has not had a significant impact on its price.
The ISO 20022 standard is an international protocol that ensures secure and standardized financial message exchange between organizations. It aims to replace the SWIFT financial messaging system, which has been used by banks for global payments for the past 50 years.
One of the many benefits of ISO 20022 is its cost reduction capabilities. Interestingly, several crypto projects are expected to adopt the ISO 20022 standard, with the anticipation that their prices will rise once it is implemented.
According to a comprehensive report detailing this initiative, the introduction of ISO-standardized crypto identifiers could transform the ecosystem.
A cryptocurrency that complies with the ISO 20022 standard could be approved by a central bank for crypto payments. ISO-standardized crypto identifiers will revolutionize the way cryptocurrencies are used. If ISO issues an official code for a cryptocurrency, such as Bitcoin or Ether (ETH), that cryptocurrency will be integrated into the database systems of major financial services like Visa and MasterCard.
One of the main challenges is that most of these assets do not have Digital Token Identifiers (DTIs) for easy identification. As a result, banks may struggle to differentiate between “Bitcoin” and “Bitcoin Cash,” unlike with traditional currencies like USD and AUD.
Crypto Assets Recognized as ISO 20022 Compliant
Nevertheless, nine cryptocurrencies have already been certified and recognized as ISO 20022-compliant assets.
Ripple (XRP) is one of these cryptocurrencies. Ripple is renowned for its role in facilitating real-time, cross-border payments and remittances for financial institutions. It also prioritizes enabling cross-border payments.
Another ISO 20022-compliant cryptocurrency is Quant (QNT). Its main focus is addressing interoperability issues for seamless communication and interaction between different blockchains. Other cryptocurrencies included in the project are Stellar (XLM), Hedera Hashgraph (HBAR), IOTA (MIOTA), XDC Network (XDC), Algorand (ALGO), Cardano (ADA), and Verge (XVG).
It is worth noting that Verge is the latest cryptocurrency to become ISO 20022-compliant. This year, a revision of the inclusion criteria was planned to expand the list of compliant coins and tokens. These changes also aim to enhance security measures and reduce fraudulent activities.
Since becoming an ISO 20022-compliant asset, Verge’s price has not shown significant improvement, with only a 4.16 percent surge in the last three months. Currently, Verge is trading at $0.003475, experiencing a 0.18 percent decline in the past 24 hours. Nonetheless, it has a bullish market sentiment with a score of 69/100.
According to a report, the successful implementation of ISO 20022 largely depends on the preparedness and adaptability of each participant in the financial industry.
The impact of ISO 20022 implementation relies heavily on the preparedness and adaptability of all participants in the financial industry. While it offers various advantages in terms of efficiency and data richness, the transition can be demanding, requiring technological investments and changes to business processes. Proper incorporation of ISO 20022 positions organizations to effectively address the evolving demands and regulatory requirements of the financial landscape.
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