iso20022 and the Five Cryptos that Comply


I hadn’t heard of iso20022 until this week, and it’s probably something we should all keep on our radar as it pertains to crypto. Maybe you all know about it, but for the people that don’t, here’s an ELI5.

What is iso20022?

ISO (International Organization for Standardization) 20022 is a global standard for sending payment instructions between local, regional, and international financial institutions. Banks globally will migrate from legacy SWIFT MT financial messaging to the highly structured and data-rich ISO 20022 standard in the coming years. The framework provides an internationally agreed business message syntax and semantics. ISO 20022 will become the global standard for large-scale payment systems of reserve currencies, handling the vast majority of such transactions worldwide.

What does it have to do with crypto?

The U.S. government is helping expedite the adoption of ISO 20022, and the Federal Reserve Banks will adopt the standard in late 2023. I understand that some regulation might be good for mass adoption, but I am wary of how aggressive the government might get.

There are currently five cryptocurrencies compliant with iso20022; This means that, should the FSR decide to allow digital reserve currencies, these could be among the options considered. To be compliant, a crypto blockchain would have to fulfill all the SWIFT communication requirements, including the ability to pass customer data on the blockchain:

XRP/Ripple XDC Stellar Lumens Iota Algorand

And these cryptos are rumored to be compliant but not confirmed:

• Hedera Hashgraph

• Quant

• Cardano

ISO defines standards for fiat currencies under ISO 4217. This 4217 standard has been used for global bank payments and stock markets since 1978, when it was first codified. The existing code definition method raises issues for crypto codification, because many crypto codes conflict with existing country codes.

The following chart shows some ways in which crypto codes could clash with current ISO 4217 currency identifiers:

There’s a lot of interesting information out there about this, it’s worth DYOR on it. I’ll drop some links below so you can dig deeper, but I thought this would be a good place to start.

This is not an ADA or ALGO shill post, although I do love my ALGO.*





Edit: Changed Ripple to XRP as Ripple is the company not the crypto

Edit: added Ripple back in there per a user’s suggestion

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