SWIFT's recent selection for integration with the ISO 20022 standard includes eight digital assets aimed at improving international payment efficiency.
Technical Justification for Crypto Inclusion
The eight selected cryptocurrencies — XRP, XLM, XDC, QNT, HBAR, ALGO, MIOTA, and ADA — were highlighted in the November 2022 edition of the ASOBANCA Law Journal for their technological compatibility with the ISO 20022 messaging format.
Each of these assets offers enhanced processing speed, reduced transaction fees, and improved liquidity and transparency. These attributes are crucial in resolving historical inefficiencies in the financial messaging system, including slow settlement times and high operational costs.
The Future of Financial Messaging and Digital Assets
These digital assets are not arbitrarily included but are part of a broader initiative to modernize financial communications using blockchain-integrated platforms. As the migration to ISO 20022 continues, the financial industry is expected to rely on these technologies to support global payment modernization. The principle behind this evolution is rooted in efficiency, with ISO 20022 offering greater data structure and richer transaction content.
Adoption and Industry Transition
The final part of SMQKE’s commentary underscores that more initiatives and projects related to these cryptocurrencies will emerge as the ISO 20022 standard is adopted. The integration of digital assets into the ISO framework is not a speculative narrative but a documented trajectory. This evolution is expected to accelerate as international banks and financial providers transition their messaging infrastructure.
SWIFT's choice of digital assets for integration with ISO 20022 indicates the growing role of blockchain platforms in modernizing the global financial system.
