Research by SMQKE highlights how the shift to ISO 20022 opens new payment mechanisms within the SWIFT network, particularly showcasing Ripple as an alternative for international financial transactions.
Innovations in International Transactions
One of the documents referenced by SMQKE discusses how SWIFT GPI and other innovative channels are shaping the future of international payments. The transition to ISO 20022 is set to ensure compatibility across various cross-border payment platforms and serve as a catalyst for introducing new payment mechanisms.
Ripple's Architecture and Role
Another document from J.P. Morgan illustrates Ripple as an example of blockchain-based processing. Ripple interconnects disparate financial systems, facilitating international money movement without significant overhauls of existing infrastructure. Its model offers fast, secure transfers with minimal fees.
Alternative Payment Channels
A document from Temenos introduces the concept of 'cryptorails' as alternatives to traditional banking systems. Ripple stands out as a distributed payment protocol that enables exchanges between any currency, ensuring efficient transfers with rapid settlement through local currency conversion.
The integration of the ISO 20022 standard alongside mechanisms like Ripple could significantly transform international transactions by providing enhanced speed, transparency, and accessibility.
