The Dawn of a New Era: ISO 20022 and the Future of International Payments
Come November 2022, the global financial landscape is set for a seismic shift. The archaic international payments system, which has been in operation for nearly half a century, is gearing up for a massive overhaul by migrating to blockchain technology under the ISO 20022 standard.
What is ISO 20022?
ISO 20022 represents a unified framework that aims to standardize payment and financial messaging across the globe. Scheduled for its initial rollout this November, with full implementation expected by 2025, this framework has the potential to modernize our financial system.
The Current State: SWIFT and Its Limitations
Today's international payments system, widely known as SWIFT, processes an astounding 45.8 million transactions daily. Founded in the early 1970s, this system has been a linchpin for cross-border financial activities. However, it's plagued by inefficiencies such as slow transaction times, high costs, and cumbersome paperwork.
Blockchain to the Rescue
The implementation of ISO 20022 is slated to revamp this outdated system using blockchain technology, in addition to integrating a variety of cryptocurrencies designed to scale with the high volume of transactions.
A Boon for Cryptocurrency Investors?
With the shift to ISO 20022, a selection of cryptocurrencies that are compliant with this new standard are poised for significant growth. The speculation is rife that these digital assets could become incredibly valuable as they become an integral part of the new global financial infrastructure.
Cryptocurrencies Set for the Spotlight
Among the cryptocurrencies identified as ISO 20022 compliant are:
- Ripple (XRP)
A Turning Point or Just Hype?
While there's considerable buzz around this transition, it's crucial for investors to conduct their own research. The stakes are high, and the shift is anticipated to occur in a single day, speculated to be in November.