The ISO 20022 crypto-list is a collection of compliant digital coins and tokens that satisfy the standards of the International Organization for Standardization (ISO) standards 20022. There are many cryptocurrencies that will be integrated into this new financial system, referred to as ISO 20022-compliant cryptocurrencies and there is much speculation these cryptocurrencies will soar in price once the standard is implemented.

Digital Token Identifiers (DTIs) are identifier numbers or symbols that represent digital currencies. The main problem with transacting in digital currencies is that they don’t have identifiers that banks can use to differentiate token transactions. For example, a bank program could easily tell the difference between “USD” and “AUD,” but this is more difficult for “Bitcoin” and “Bitcoin Cash.”

ISO (International Organization for Standardization) is a non-governmental global organization based in Geneva, Switzerland. ISO develops international standards for industrial, commercial, and proprietary use. If an ISO standard is established, virtually all financial institutions in the world adopt it. An ISO code for Bitcoin (BTC) could facilitate global mainstream adoption more than any other action.

This guide explains some of the basics of ISO 20022 and provides a list of cryptocurrencies compliant with ISO 20022.

What is ISO 20022?

ISO 20022 is an international protocol that provides a secure and standardized way of exchanging financial messages between organizations within the payment industry. The protocol will replace the 50-year-old SWIFT financial messaging system, which banks and other financial institutions use to facilitate global payments.

The standard addresses the need of financial services organizations looking to create a globally accepted messaging language. The language allows them to implement their business processes and collaborate with their partners utilizing one universal platform.

Financial institutions such as banks, crypto companies, and stock brokers can benefit from ISO 20022. It enables efficient and effective communication across multiple departments and organizations, reducing costs associated with numerous communication systems. In addition, achieving interoperability between existing protocols while still having the ability to support specific financial business processes makes ISO 20022 an excellent choice for any company involved in financial services.

Why is the ISO 20022 Crucial?

Financial institutions have always had to consider technological advances to keep up with the competition. in the new “ISO 20022” standard, cryptos could be assigned ISO codes if they are compliant with ISO 20022. This could lead to adoption by centralized banks and enable cross-border crypto payments through centralized financial institutions.

As we move toward a new quantum financial system, any third party, including cryptocurrencies, wishing to engage with them must be able to use the ISO 20022 format. The standard presents an essential test for the ability of institutions of all sizes to adapt and embrace innovative solutions.

ISO 20022 is more advanced than the traditional legacy formats banks use in that it supports more significant data volumes and faster processing rates. As a result, it is ideal for quick payments, daily liquidity management, compliance checks, and fraud detection and prevention, all demands. Overall, ISO 20022 presents an opportunity and challenge for companies wishing to stay ahead of their peers regarding technology.

Considerations for migrating to ISO 20022

Crypto companies must consider several factors when migrating to the ISO 20022 protocol. These include:

• Readiness of payment infrastructure: The payment infrastructure must be ready to support ISO 20022. The infrastructure includes hardware and software installations and the ability to send and receive messages in the proper format.
• Compliance with regulatory requirements: Organizations must ensure their systems comply with necessary regulations, such as anti-money laundering laws.
• Data security: Data security is a crucial concern regarding payments and financial transactions. Organizations must ensure that their systems are secure and can protect customer data.
• Cost of implementation: Migrating to the ISO 20022 protocol can be costly, so organizations must consider the cost of implementation before deciding if it’s a viable option.
• Program governance and support: Organizations must have the plan to ensure their program is adequately managed and supported. It includes having a dedicated team, proper monitoring and reporting processes, and adequate staff training.
• Strategic benefits of ISO 20022 implementation: Organizations must consider the strategic benefits of ISO 20022 performance, such as increased efficiency and cost savings.
• Benefits of the ISO 20022 Crypto List The ISO 20022 Crypto List provides numerous benefits for investors. By listing compliant coins and tokens, it offers a level of assurance that the underlying asset meets specific standards.
• Training and resources requirements: Organizations must train their staff adequately trained to use the ISO 20022 protocol properly. They should also have access to adequate resources, such as manuals and helpdesks, to ensure proper protocol implementation.
• Client education:  Organizations must ensure their clients are aware of the changes to the payment infrastructure and any possible risks associated with using ISO 20022. Client education can help reduce the risk of fraud and other security issues.
• Management of new data and data fields: When migrating to ISO 20022, organizations must also be prepared to manage any new data or data fields that might be required. They include having the necessary processes and systems to process this information.

Compliance with ISO 20022

There has yet to be an official certification authority for ISO 20022 compliance. The ISO 20022 Compliance Checklist provided by the ISO 20022 Registration Authority (RA) and Technical Support Group (TSG) is a guidance document for implementers, adopters, and consumers of ISO 20022 messages. It helps them assess their adherence to the standard and ensure organizations account for the key aspects of ISO 20022 compliance.

Compliance Checklist

This checklist outlines various elements to consider when implementing ISO 20022, such as message structure, data types, message flows, and message versions. The list will help organizations align their implementations with the standard and enhance interoperability.

Here is a list of the key aspects of the checklist, along with a brief description of each:

1. Use of official ISO 20022 Message Definitions: The messages must use the official ISO 20022 message definitions published by ISO and available on the ISO 20022 website.

2. ISO 20022 Business Transaction: Refers to the business process or transaction the message intends to support. The ISO 20022 standard defines a set of business transactions, and messages should be used per these definitions.

3. Messages must be valid ISO 20022 Message Instances: The messages must conform to the structure and content rules defined by the ISO 20022 standard.

4. Messages must respect the ISO 20022 Constraints: This refers to the constraints defined by the ISO 20022 standard, such as maximum length, data type, and allowed values for specific fields.

5. Messages must use registered code values: The codes used in messages must come from the code lists registered and maintained by ISO.

6. Use of the Business Application Header: The Business Application Header is a standard header included in all ISO 20022 messages. It contains information about the message, such as its type, sender, and receiver.

7. Use of Supplementary Data Extensions: Supplementary Data extensions allow for additional information in messages not covered by the standard message definitions. These extensions must follow the rules defined by ISO.

While compliance with the checklist does not grant an official certification, it is a valuable tool for self-assessment and ensuring conformity with ISO 20022. Implementers and adopters can use the checklist to verify that they have adequately addressed the essential aspects of ISO 20022 implementation, reducing the risk of misinterpretation or non-compliance.

Additionally, industry-specific organizations and regulatory bodies may develop their guidelines or requirements for ISO 20022 adoption within their domains. Organizations must consider these specific requirements in addition to the general guidance provided by the ISO 20022 Compliance Checklist.

Benefits of Compliance

By meeting the ISO 20022 Crypto List’s strict criteria, coins, and tokens can enjoy several benefits. These include:

• Increased visibility and credibility among investors and traders.

• Enhanced security measures for storage and transactions.

• Improved liquidity for trading activities.

• Reduced risk of fraudulent activities.

• Increased customer confidence in the coin or token’s stability and reliability.

List of ISO 20022-compliant cryptocurrencies

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.

For cryptos to be classified as legitimate currencies by ISO, they have to both comply with new standards in global financial systems and have an ISO code that doesn’t conflict with existing codes.

These eight (8) coins and tokens have been certified as ISO 20022-compliant:

1. Quant (QNT): Launched in June 2018, Quant is a powerful over-ledger with the potential to revolutionize global financial networks and systems forever. Its mission is to bridge, communicate and interact with different blockchains and other ISO 20022 networks while retaining operations’ efficiency and level of interoperability.

2. Ripple (XRP): Ripple is a digital asset native to the RippleNet payments network. It aims to provide fast and secure transactions for enterprise customers—the XRP token bridges different currencies, allowing users to transfer money quickly and cheaply.

3. Stellar (XLM): Stellar is a decentralized payment network that enables near-instant and secure cross-border payments. The Stellar Network also supports other operations, such as the transfer of assets between its users.

4. Hedera (HBAR): Hedera is a decentralized public network that provides developers and users access to an immutable, cryptographically secure ledger. HBAR tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 5 seconds.

5. IOTA (MIOTA): IOTA is a decentralized, open-source distributed ledger protocol specializing in transactions between machines in the Internet of Things (IoT). The MIOTA token acts as a currency for transactions on the platform.

6. XDC Network (XDC): XDC Network is a blockchain-based protocol that allows users to transfer value using XDC tokens. The XDC protocol enables companies and developers to build innovative applications on top of the network.

7. Algorand (ALGO): Algorand is a permissionless, pure proof-of-stake distributed ledger technology that enables users to transfer value quickly and securely. ALGO tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 2 seconds.

8. Cardano (ADA): ADA is the native currency of Cardano, a third-generation, decentralized proof-of-stake (PoS) blockchain platform. Cardano is ranked as the seventh biggest project in terms of market cap and is sometimes referred to as the Ethereum Killer.

Each of these coins was developed to make global transactions more accessible, and because of this, they could comply with the ISO 20022 standard more quickly.

However, as more cryptos do not want to be left out of the worldwide payment sector and move toward ISO 20022 compliance, this list will only expand.

And just because they follow ISO 20022 doesn’t necessarily mean they’re suitable investments.

Ripple is an excellent example of crypto with numerous disadvantages compared to benefits – and Helena Margarido encourages you to avoid it. (Here’s why.)

Hedera is a fascinating penny coin with a lot of potential that you can learn more about here, and it certainly belongs on your watchlist. (These picks were hand-chosen by our team of experts if you’re searching for penny coins that are flashing buys.)

How is ISO 20022 changing in 2023?

ISO 20022 will undergo several changes in 2023. The ISO 20022 Crypto List Committee will expand the list of compliant coins and tokens and revise the criteria for inclusion on the list. In addition, the organization will make changes to improve security measures and reduce fraudulent activities.

New features such as cross-chain interoperability and atomic swaps will likely feature in the new additions, allowing users to effortlessly convert one cryptocurrency into another.

Swift, the world’s leading payment system, announced its decision to delay the implementation of the ISO 20022 standard until March 2023. This international transaction standard has become increasingly popular as it enables data-rich payments compared to traditional formats. As a result, financial institutions worldwide are now considering their options and timelines for completing the upgrade.

These changes will make the ISO 20022 protocol even more secure and reliable for international and cross-border payments.

How will ISO 20022 implementation impact different players in the industry?

ISO 20022 implementation will require all financial service institutions, market infrastructures, and corporates engaged in international payment flows to change how they process, store, and communicate cross-border payment information.

We can only realize the benefits of ISO 20022 with an end-to-end implementation affecting everything from the core payment application, middleware services, AML/KYC compliance tools, reporting applications, messaging interfaces, and customer interfaces. Therefore, organizations must begin convening experts to plan for an implementation timeline that meets CBPR+ requirements.

What impact will ISO 20022 have around the world?

The ISO 20022 standard will completely change the financial landscape and improve international money transfers. Europe will transition to ISO 20022 towards the end of 2022, and the US will implement it in 2023.

Cryptos that update their blockchains to comply with this new ISO standard will likely appreciate in price if they are chosen for payments by banks.

Over 70 countries have adopted ISO 20022 in their payment systems, including Switzerland, China, India, and Japan. And with over 200 payment types in scope, it will harmonize formats and data components from different payment methods that could not previously work together.

ISO 20022 is now being used by over 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 could not previously communicate with one another due to differences in standards.

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

Image Source: Red Compass

What banks must do to stay ahead of the competition

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

Banks are under competitive strain to migrate to this new standard as the overall migration of the payment industry toward immediate payments makes their existing goods and services vulnerable.

Because this standard is a more modernized and versatile standard than conventional legacy formats, it requires significantly greater data volume processing. As a result, bank systems and databases will need to be capable of handling these larger volumes at quicker speeds for real-time payments, daily liquidity management, compliance checks, and fraud detection and prevention.

It’s critical to allow enough time for testing so that syntax and formatting information is accurate, and the data’s migration into all linked payment and clearing systems. Testing should ideally be completed by the second quarter of 2022 at the latest.

Banks must inform their corporate customers about the additional data that may be accessible, as well as how it will be utilized. In addition, those clients should be completely informed and involved in end-to-end testing.

Below is the timeline for ISO 20022 migration.

Image Source: Compact

High-Value Payments (HVPs) on ISO 20022

To establish a road map to standardization for high-value payments and real-time gross settlement (RTGS), the SWIFT, global central banks and market infrastructures have established the HVPS+ market practice task group.

“By unifying messaging standards across HPVs, participants in the payment system will be able to benefit from efficiencies and lay the groundwork for new services.” Michael Knorr, Wells Fargo Bank’s Head of Payments & Liquidity Management for Financial Institutions.

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 significant value transfers with the appropriate monitoring and performance management solution is critical.

RTGS is changing the global financial landscape 

Image Source: Compact

Challenges of ISO 20022

Incredibly complex standard

During a software upgrade plan if necessary, the plans have to meet the deadlines and ensure the future security of all systems in place. ISO (2002) is an incredibly complex standard and interrelated process that can be challenging.

Cost of implementation

Payment providers requiring payment technology before 20022 will have to undergo revisions to ISO 20022. It also contains appropriate regulations to prevent AML fraud and compliance checks. Additionally, old outdated system systems that do not support the ISO20022 format need to update, upgrade, and convert. Obviously, there are budgets and these must be agreed upon between the financial institutions, stakeholders, and partners.

Managing additional information

The ISO message is often longer than a standard payments email. The rapid expansion of the data requires re-designing and updating infrastructures in order to handle ISO 20022. Each character in messages must be 100% consistent in terms of specifications. Format validation is performed at varying stages throughout the communication channel chain between senders and recipients. Even one missing colon could cause an entire transfer to be denied.

Conclusion

The ISO 20022 was developed by the “Registration Management Group,” which comprises 37 of the world’s largest financial players, including Ripple (XRP). Ripple’s vice president claims that Ripple already complies with ISO 20022 and together with RippleNet will be the first crypto company that is ready for the new global financial standard.

The ISO 20022 protocol will revolutionize the way we make payments. With its secure and reliable features, it will help financial institutions around the world improve efficiency and reduce fraud. As implementation begins in 2023, different players in the industry must start preparing for a seamless transition to take advantage of the potential benefits of this new protocol.  With the ability to process data-rich payments, the ISO 20022 protocol will revolutionize the payment industry worldwide.

Keeping up with new technologies, legal changes, and the introduction of new international payment standards is difficult. With ISO migration just around the corner, organizations can turn data into knowledge to ensure that worldwide payment systems run safely and effectively.

In 2025, ISO will be the global standard for high- or large-value payment systems in all reserve currencies and is projected to handle 80% of all transactions, including 87% of transaction value globally. The European Central Bank and SWIFT have announced the ISO 20022 go-live dates for the standard.

The ISO 20022 crypto-list is a collection of compliant digital coins and tokens that satisfy the standards of the International Organization for Standardization (ISO) standards 20022. There are many cryptocurrencies that will be integrated into this new financial system, referred to as ISO 20022-compliant cryptocurrencies and there is much speculation these cryptocurrencies will soar in price once the standard is implemented.

Digital Token Identifiers (DTIs) are identifier numbers or symbols that represent digital currencies. The main problem with transacting in digital currencies is that they don’t have identifiers that banks can use to differentiate token transactions. For example, a bank program could easily tell the difference between “USD” and “AUD,” but this is more difficult for “Bitcoin” and “Bitcoin Cash.”

ISO (International Organization for Standardization) is a non-governmental global organization based in Geneva, Switzerland. ISO develops international standards for industrial, commercial, and proprietary use. If an ISO standard is established, virtually all financial institutions in the world adopt it. An ISO code for Bitcoin (BTC) could facilitate global mainstream adoption more than any other action.

This guide explains some of the basics of ISO 20022 and provides a list of cryptocurrencies compliant with ISO 20022.

What is ISO 20022?

ISO 20022 is an international protocol that provides a secure and standardized way of exchanging financial messages between organizations within the payment industry. The protocol will replace the 50-year-old SWIFT financial messaging system, which banks and other financial institutions use to facilitate global payments.

The standard addresses the need of financial services organizations looking to create a globally accepted messaging language. The language allows them to implement their business processes and collaborate with their partners utilizing one universal platform.

Financial institutions such as banks, crypto companies, and stock brokers can benefit from ISO 20022. It enables efficient and effective communication across multiple departments and organizations, reducing costs associated with numerous communication systems. In addition, achieving interoperability between existing protocols while still having the ability to support specific financial business processes makes ISO 20022 an excellent choice for any company involved in financial services.

Why is the ISO 20022 Crucial?

Financial institutions have always had to consider technological advances to keep up with the competition. in the new “ISO 20022” standard, cryptos could be assigned ISO codes if they are compliant with ISO 20022. This could lead to adoption by centralized banks and enable cross-border crypto payments through centralized financial institutions.

As we move toward a new quantum financial system, any third party, including cryptocurrencies, wishing to engage with them must be able to use the ISO 20022 format. The standard presents an essential test for the ability of institutions of all sizes to adapt and embrace innovative solutions.

ISO 20022 is more advanced than the traditional legacy formats banks use in that it supports more significant data volumes and faster processing rates. As a result, it is ideal for quick payments, daily liquidity management, compliance checks, and fraud detection and prevention, all demands. Overall, ISO 20022 presents an opportunity and challenge for companies wishing to stay ahead of their peers regarding technology.

Considerations for migrating to ISO 20022

Crypto companies must consider several factors when migrating to the ISO 20022 protocol. These include:

• Readiness of payment infrastructure: The payment infrastructure must be ready to support ISO 20022. The infrastructure includes hardware and software installations and the ability to send and receive messages in the proper format.
• Compliance with regulatory requirements: Organizations must ensure their systems comply with necessary regulations, such as anti-money laundering laws.
• Data security: Data security is a crucial concern regarding payments and financial transactions. Organizations must ensure that their systems are secure and can protect customer data.
• Cost of implementation: Migrating to the ISO 20022 protocol can be costly, so organizations must consider the cost of implementation before deciding if it’s a viable option.
• Program governance and support: Organizations must have the plan to ensure their program is adequately managed and supported. It includes having a dedicated team, proper monitoring and reporting processes, and adequate staff training.
• Strategic benefits of ISO 20022 implementation: Organizations must consider the strategic benefits of ISO 20022 performance, such as increased efficiency and cost savings.
• Benefits of the ISO 20022 Crypto List The ISO 20022 Crypto List provides numerous benefits for investors. By listing compliant coins and tokens, it offers a level of assurance that the underlying asset meets specific standards.
• Training and resources requirements: Organizations must train their staff adequately trained to use the ISO 20022 protocol properly. They should also have access to adequate resources, such as manuals and helpdesks, to ensure proper protocol implementation.
• Client education:  Organizations must ensure their clients are aware of the changes to the payment infrastructure and any possible risks associated with using ISO 20022. Client education can help reduce the risk of fraud and other security issues.
• Management of new data and data fields: When migrating to ISO 20022, organizations must also be prepared to manage any new data or data fields that might be required. They include having the necessary processes and systems to process this information.

Compliance with ISO 20022

There has yet to be an official certification authority for ISO 20022 compliance. The ISO 20022 Compliance Checklist provided by the ISO 20022 Registration Authority (RA) and Technical Support Group (TSG) is a guidance document for implementers, adopters, and consumers of ISO 20022 messages. It helps them assess their adherence to the standard and ensure organizations account for the key aspects of ISO 20022 compliance.

Compliance Checklist

This checklist outlines various elements to consider when implementing ISO 20022, such as message structure, data types, message flows, and message versions. The list will help organizations align their implementations with the standard and enhance interoperability.

Here is a list of the key aspects of the checklist, along with a brief description of each:

1. Use of official ISO 20022 Message Definitions: The messages must use the official ISO 20022 message definitions published by ISO and available on the ISO 20022 website.

2. ISO 20022 Business Transaction: Refers to the business process or transaction the message intends to support. The ISO 20022 standard defines a set of business transactions, and messages should be used per these definitions.

3. Messages must be valid ISO 20022 Message Instances: The messages must conform to the structure and content rules defined by the ISO 20022 standard.

4. Messages must respect the ISO 20022 Constraints: This refers to the constraints defined by the ISO 20022 standard, such as maximum length, data type, and allowed values for specific fields.

5. Messages must use registered code values: The codes used in messages must come from the code lists registered and maintained by ISO.

6. Use of the Business Application Header: The Business Application Header is a standard header included in all ISO 20022 messages. It contains information about the message, such as its type, sender, and receiver.

7. Use of Supplementary Data Extensions: Supplementary Data extensions allow for additional information in messages not covered by the standard message definitions. These extensions must follow the rules defined by ISO.

While compliance with the checklist does not grant an official certification, it is a valuable tool for self-assessment and ensuring conformity with ISO 20022. Implementers and adopters can use the checklist to verify that they have adequately addressed the essential aspects of ISO 20022 implementation, reducing the risk of misinterpretation or non-compliance.

Additionally, industry-specific organizations and regulatory bodies may develop their guidelines or requirements for ISO 20022 adoption within their domains. Organizations must consider these specific requirements in addition to the general guidance provided by the ISO 20022 Compliance Checklist.

Benefits of Compliance

By meeting the ISO 20022 Crypto List’s strict criteria, coins, and tokens can enjoy several benefits. These include:

• Increased visibility and credibility among investors and traders.

• Enhanced security measures for storage and transactions.

• Improved liquidity for trading activities.

• Reduced risk of fraudulent activities.

• Increased customer confidence in the coin or token’s stability and reliability.

List of ISO 20022-compliant cryptocurrencies

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.

For cryptos to be classified as legitimate currencies by ISO, they have to both comply with new standards in global financial systems and have an ISO code that doesn’t conflict with existing codes.

These eight (8) coins and tokens have been certified as ISO 20022-compliant:

1. Quant (QNT): Launched in June 2018, Quant is a powerful over-ledger with the potential to revolutionize global financial networks and systems forever. Its mission is to bridge, communicate and interact with different blockchains and other ISO 20022 networks while retaining operations’ efficiency and level of interoperability.

2. Ripple (XRP): Ripple is a digital asset native to the RippleNet payments network. It aims to provide fast and secure transactions for enterprise customers—the XRP token bridges different currencies, allowing users to transfer money quickly and cheaply.

3. Stellar (XLM): Stellar is a decentralized payment network that enables near-instant and secure cross-border payments. The Stellar Network also supports other operations, such as the transfer of assets between its users.

4. Hedera (HBAR): Hedera is a decentralized public network that provides developers and users access to an immutable, cryptographically secure ledger. HBAR tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 5 seconds.

5. IOTA (MIOTA): IOTA is a decentralized, open-source distributed ledger protocol specializing in transactions between machines in the Internet of Things (IoT). The MIOTA token acts as a currency for transactions on the platform.

6. XDC Network (XDC): XDC Network is a blockchain-based protocol that allows users to transfer value using XDC tokens. The XDC protocol enables companies and developers to build innovative applications on top of the network.

7. Algorand (ALGO): Algorand is a permissionless, pure proof-of-stake distributed ledger technology that enables users to transfer value quickly and securely. ALGO tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 2 seconds.

8. Cardano (ADA): ADA is the native currency of Cardano, a third-generation, decentralized proof-of-stake (PoS) blockchain platform. Cardano is ranked as the seventh biggest project in terms of market cap and is sometimes referred to as the Ethereum Killer.

Each of these coins was developed to make global transactions more accessible, and because of this, they could comply with the ISO 20022 standard more quickly.

However, as more cryptos do not want to be left out of the worldwide payment sector and move toward ISO 20022 compliance, this list will only expand.

And just because they follow ISO 20022 doesn’t necessarily mean they’re suitable investments.

Ripple is an excellent example of crypto with numerous disadvantages compared to benefits – and Helena Margarido encourages you to avoid it. (Here’s why.)

Hedera is a fascinating penny coin with a lot of potential that you can learn more about here, and it certainly belongs on your watchlist. (These picks were hand-chosen by our team of experts if you’re searching for penny coins that are flashing buys.)

How is ISO 20022 changing in 2023?

ISO 20022 will undergo several changes in 2023. The ISO 20022 Crypto List Committee will expand the list of compliant coins and tokens and revise the criteria for inclusion on the list. In addition, the organization will make changes to improve security measures and reduce fraudulent activities.

New features such as cross-chain interoperability and atomic swaps will likely feature in the new additions, allowing users to effortlessly convert one cryptocurrency into another.

Swift, the world’s leading payment system, announced its decision to delay the implementation of the ISO 20022 standard until March 2023. This international transaction standard has become increasingly popular as it enables data-rich payments compared to traditional formats. As a result, financial institutions worldwide are now considering their options and timelines for completing the upgrade.

These changes will make the ISO 20022 protocol even more secure and reliable for international and cross-border payments.

How will ISO 20022 implementation impact different players in the industry?

ISO 20022 implementation will require all financial service institutions, market infrastructures, and corporates engaged in international payment flows to change how they process, store, and communicate cross-border payment information.

We can only realize the benefits of ISO 20022 with an end-to-end implementation affecting everything from the core payment application, middleware services, AML/KYC compliance tools, reporting applications, messaging interfaces, and customer interfaces. Therefore, organizations must begin convening experts to plan for an implementation timeline that meets CBPR+ requirements.

What impact will ISO 20022 have around the world?

The ISO 20022 standard will completely change the financial landscape and improve international money transfers. Europe will transition to ISO 20022 towards the end of 2022, and the US will implement it in 2023.

Cryptos that update their blockchains to comply with this new ISO standard will likely appreciate in price if they are chosen for payments by banks.

Over 70 countries have adopted ISO 20022 in their payment systems, including Switzerland, China, India, and Japan. And with over 200 payment types in scope, it will harmonize formats and data components from different payment methods that could not previously work together.

ISO 20022 is now being used by over 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 could not previously communicate with one another due to differences in standards.

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

Image Source: Red Compass

What banks must do to stay ahead of the competition

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

Banks are under competitive strain to migrate to this new standard as the overall migration of the payment industry toward immediate payments makes their existing goods and services vulnerable.

Because this standard is a more modernized and versatile standard than conventional legacy formats, it requires significantly greater data volume processing. As a result, bank systems and databases will need to be capable of handling these larger volumes at quicker speeds for real-time payments, daily liquidity management, compliance checks, and fraud detection and prevention.

It’s critical to allow enough time for testing so that syntax and formatting information is accurate, and the data’s migration into all linked payment and clearing systems. Testing should ideally be completed by the second quarter of 2022 at the latest.

Banks must inform their corporate customers about the additional data that may be accessible, as well as how it will be utilized. In addition, those clients should be completely informed and involved in end-to-end testing.

Below is the timeline for ISO 20022 migration.

Image Source: Compact

High-Value Payments (HVPs) on ISO 20022

To establish a road map to standardization for high-value payments and real-time gross settlement (RTGS), the SWIFT, global central banks and market infrastructures have established the HVPS+ market practice task group.

“By unifying messaging standards across HPVs, participants in the payment system will be able to benefit from efficiencies and lay the groundwork for new services.” Michael Knorr, Wells Fargo Bank’s Head of Payments & Liquidity Management for Financial Institutions.

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 significant value transfers with the appropriate monitoring and performance management solution is critical.

RTGS is changing the global financial landscape 

Image Source: Compact

Challenges of ISO 20022

Incredibly complex standard

During a software upgrade plan if necessary, the plans have to meet the deadlines and ensure the future security of all systems in place. ISO (2002) is an incredibly complex standard and interrelated process that can be challenging.

Cost of implementation

Payment providers requiring payment technology before 20022 will have to undergo revisions to ISO 20022. It also contains appropriate regulations to prevent AML fraud and compliance checks. Additionally, old outdated system systems that do not support the ISO20022 format need to update, upgrade, and convert. Obviously, there are budgets and these must be agreed upon between the financial institutions, stakeholders, and partners.

Managing additional information

The ISO message is often longer than a standard payments email. The rapid expansion of the data requires re-designing and updating infrastructures in order to handle ISO 20022. Each character in messages must be 100% consistent in terms of specifications. Format validation is performed at varying stages throughout the communication channel chain between senders and recipients. Even one missing colon could cause an entire transfer to be denied.

Conclusion

The ISO 20022 was developed by the “Registration Management Group,” which comprises 37 of the world’s largest financial players, including Ripple (XRP). Ripple’s vice president claims that Ripple already complies with ISO 20022 and together with RippleNet will be the first crypto company that is ready for the new global financial standard.

The ISO 20022 protocol will revolutionize the way we make payments. With its secure and reliable features, it will help financial institutions around the world improve efficiency and reduce fraud. As implementation begins in 2023, different players in the industry must start preparing for a seamless transition to take advantage of the potential benefits of this new protocol.  With the ability to process data-rich payments, the ISO 20022 protocol will revolutionize the payment industry worldwide.

Keeping up with new technologies, legal changes, and the introduction of new international payment standards is difficult. With ISO migration just around the corner, organizations can turn data into knowledge to ensure that worldwide payment systems run safely and effectively.

In 2025, ISO will be the global standard for high- or large-value payment systems in all reserve currencies and is projected to handle 80% of all transactions, including 87% of transaction value globally. The European Central Bank and SWIFT have announced the ISO 20022 go-live dates for the standard.