What Difference Will ISO 20022 Make in the Crypto Space
One of the solutions that cryptocurrency has been able to bring into the financial world is the fast transfer of funds, at a cheaper rate, this is among other beautiful things that we know cryptocurrency has done. In the past, we would have to wait for about 3 weeks for an international wire transfer to move from one location to another. It is very painful when you start to understand that the money is actually sitting somewhere with no interest for the sender who has to wait for weeks before his sent funds reach its location or the receiver who has to wait for weeks to receive a fund that was sent. The world is yet to accept cryptocurrency in full but they are drifting to accepting blockchain, more of the centralized blockchain companies that are venture capital oriented and are transparent to help solve the delayed international transfer issues.
With this, organizations such as the World Economic Forum (WEF) have looked into ISO 20022 crypto assets. There are going to be using CBDC tokens. At this point, the questions start to roll in. Are Cryptocurrencies ISO-compliant, and can banks use them? While we know there are centralized blockchain tokens like Ripple XRP and Stellar XLM that also fall into this category although it is decentralized. Which other blockchain will allow monitoring by regulators? People in the centralized financial world believe that an ISO for Bitcoin would give Bitcoin its mainstream recognition. With the regular Central Bank Digital Currency (CBDC), which uses ISO 4217 standards, it is easy for banks to identify currencies from different countries during international transactions but cryptocurrency hasn't had any ISO code. XBT is an unofficial ISO Code for Bitcoin, but would BTC eventually get an official ISO code with the ISO 20022 which wants to allow for cryptocurrency that can agree to regulatory terms, and allow for monitoring?
The purpose of ISO 20022 in cryptocurrency is to allow cryptocurrencies to be accepted and used for international transactions by banks. Some cryptocurrencies are said to be compliant with ISO 20022 which includes XLM, Hedera HBAR, XDC Network, Algorand, Iota, Cardano, and Quant. These coins are rumored or believed to be compliant with the standard. If you look at most of these coins, they have not been performing well in the past few years, and it looks like it is more of a centralized problem or regulation problem. Do you think a lot of cryptocurrency coins will meet this standard or will they just pass? What benefit will this standard bring into the crypto world?
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