SWIFT is taking significant steps towards modernization by adopting the ISO 20022 standard and integrating blockchain technology into its operations. This move is particularly noteworthy as the firm has clarified that it will not introduce a token that could rival XRP, a key player in the crypto space. According to the results published in the material, this decision highlights SWIFT's strategic focus on collaboration rather than competition with existing cryptocurrencies.
SWIFT's Plans for ISO 20022 Integration
In a recent discussion, crypto commentator John Squire shared insights from a SWIFT executive who elaborated on the company's plans to utilize the ISO 20022 data format for enhancing payment services. This transition is expected to empower banks to offer a range of value-added products and services, thereby improving the overall efficiency of financial transactions.
Competitive Landscape and Integration with Crypto Networks
As SWIFT navigates a competitive landscape, particularly with the rise of Ripple and its use of XRP as a bridge currency, the executive highlighted that the new platform will facilitate integration with various networks and third parties. This strategic framework aims to connect SWIFT with any crypto network, ensuring that it does not directly compete with established systems like the XRP Ledger.
The Future of Financial Interoperability
Squire emphasized that the future of the financial industry hinges on interoperability rather than monopolistic practices, indicating that multiple networks will coexist in the global payments ecosystem. However, this shift could pose challenges for XRP's price ambitions, as a significant portion of transactions may ultimately be settled on the XRP Ledger, potentially affecting its market dynamics.
Currently, the US and UK are poised to announce a new cooperation deal aimed at enhancing their collaboration in the digital asset sector, focusing on cryptocurrencies and stablecoins. For more details on this significant development, you can read the full article here.
