- ISO 20022 standard appealing to crypto projects as nine assets join the movement.
- Verge is reported to have been the latest crypto project to be added, but has failed to make a big move in its price.
ISO 20022 exists as an international protocol that ensures that the exchange of financial messages between organizations is secured and standardized. The plan is to replace the SWIFT financial messaging system which has been in operation for about 50 years and has been largely patronized by banks in global payments.
Out of its numerous benefits, one that is most mentioned is its reduction of cost. Interestingly, several crypto projects are expected to roll onto the ISO 20022. It is expected that their prices move on an upward trajectory after the standard is implemented.
According to a report that comprehensively captures all details of this initiative, the ISO-standardized crypto identifiers could transform the ecosystem.
A crypto that complies with the ISO 20022 standard could be approved by a centralized bank that enables crypto payments. ISO-standardized crypto identifiers are going to change the way crypto is used. If ISO issues an official code for crypto, such as Bitcoin or Ether (ETH), that crypto will enter the database tables of top financial services like Visa and MasterCard.
One main challenge is that most of these assets do not have Digital Token Identifiers (DTIs) for easy identification. In this case, banks would barely tell the difference between “Bitcoin” and “Bitcoin Cash,” which is not the case with USD and AUD.
Crypto Assets Recognized as ISO 20022 Compliant
Regardless, nine cryptos have so far been certified and recognized as ISO 20022-compliant assets.
Ripple (XRP) is one of such cryptos. Ripple is known for its role in real-time, cross-border payments and remittances for financial institutions. On top of that, it prioritizes the facilitation of cross-border payments.
Another crypto asset certified and recognized as ISO 20022 compliant is Quant (QNT). Its focus is to address the interoperability issues for seamless communication and interaction between blockchains. Other cryptos on the project are Stellar (XLM), Hedera Hashgraph (HBAR), IOTA (MIOTA), XDC Network (XDC), Algorand (ALGO), Cardano (ADA), Verge (XVG).
It is important to note that Verge is the latest ISO 20022-compliant asset. A series of changes were expected to happen this year as a revision of criteria for inclusion was on the to-do list to expand the list of compliant coins and tokens. The changes are also expected to improve security measures and reduce fraudulent activities.
The price of Verge has failed to impress since becoming an ISO 20022-compliant asset, as it has only recorded a 4.16 percent surge in the last three months. Verge is currently trading at $0.003475 after declining by 0.18 in the past 24 hours. However, it has a bullish market sentiment with a score of 69/100.
According to a report, the implementation of the ISO 220022 would largely rely on preparedness and adaptability.
The impact of ISO 20022 implementation hinges on the preparedness and adaptability of each participant within the financial industry. While it offers myriad advantages in terms of efficiency and data richness, the transition can be demanding, necessitating technological investments and business process alterations. Effective incorporation of ISO 20022 positions organizations to better address the financial landscape’s evolving demands and regulatory requisites.
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