The Impact of ISO 20022 on Crypto and What It Means for Crypto

ISO 20022, as its designation suggests, is a worldwide standard developed by the Society for Worldwide Interbank Financial Telecommunication to serve as the backbone for the exchange of electronic messages between financial institutions (SWIFT). In a nutshell, SWIFT is a global communications network used by several financial institutions to handle electronic money transfers.

ISO 20022 is a standard based on distributed ledger technology that employs a far more involved format than previous standards by means of XML and abstract syntax notation.

There will be a major shift in how banks interact with one another and with the outside world if ISO 20022 is fully implemented. As a result of the adoption of the ISO 20022 standard, the volume of communications sent and received between financial institutions will increase, as will the size of the messages being sent and received.

The move from the current SWIFT communication system to the ISO 20022 standard is intended to revolutionize the banking industry as a whole, but it will have far-reaching effects on the cryptocurrency industry as well. Since more people will be exposed to and willing to use coins and cryptocurrencies that adhere to the ISO 20022 standard, these coins and cryptocurrencies will become more popular overall.

A radical shift in the financial sector is possible if big cryptocurrencies like Bitcoin and Ethereum can become SWIFT-compatible and are given their own unique ISO values.

Classes of messages defined by ISO/IEC 20022

For the time being, all messages sent via the SWIFT network will be referred to as “MT” messages. MT stands for “message type/text” and is followed by a three-digit number that specifies the specific classification of the message. The ISO 15022 standard, which MT messages now conform to, will be retried so that the ISO 20022 standard can take its place.

After the transition to the new standard is complete, the current communication messages, known as “MT” messages, will be renamed “MX” messages. ISO 20022 will be a much newer and more advanced standard, however ISO 15022 will still be widely used for SWIFT communications for the time being.

SWIFT’s ISO 20022 Timeline

Transition to ISO 20022 will begin in stages. In the month of November 2022, the European Union plans to switch to the ISO 20022 standard for international level transfers of large major value. The Traget2 complex, a real-time transaction processing complex used by numerous central banks and present in the European Union, is typically a part of these exchanges.

Ties to the Federal Reserve System

Moving eastward, the Federal Reserve System of the United States plans to implement ISO 20022 in the following year, in November 2023. The older ISO 15022 standard will also continue to work despite the widespread adoption of the newer ISO 20022 standard, but only until the year 2025, after which time payments that are compliant with the ISO 15022 will no longer be allowed to flow through systems.

Forecasts by SWIFT suggest that by the end of 2023, with the help of key governments across the world, more than 75% of high-value transfers, in terms of both volume and value, will be compliant to the ISO 20022 messaging standard.

Money and Cryptocurrencies to ISO 20022 Standards

As of this writing, eight digital currencies use the ISO 20022 protocol for transactions. Among these are:

Ripple (XRP)
ISO 20022-compliant XRP is utilized for a variety of purposes including international payments and narrowing the gap between cryptocurrencies and regular fiat currencies. It’s possible to complete about 1500 transactions per second using this encryption.

Cardano (ADA)

Cardano is essentially a decentralized blockchain network that uses the proof-of-stake (POS) consensus. Although it is rumored to be one of the largest POS blockchains in the world, many people are still skeptical about whether or not it complies with ISO 20022. The cryptocurrency, which was established by a well-known figure by the name of Charles Hoskinson, has managed to participate in a large number of successful projects all over the world, which has led to an increase in its overall worth.

Stellar Lumens (XLM)

This cryptocurrency functions very similarly to XRP as it is a subordinate crypto from Ripple. However, it concentrates more on cross-currency conversions and has double the speed of XRP, supporting about 3000 transactions in a single second. However, its real-time performance is slower than XRP.

XinFin (XDC)

In addition to adhering to the proof-of-stake (POS) consensus, XinFin is a blockchain that is compatible with Ethereum Virtual Machines (EVMs). The primary aim of this blockchain is to make public and private blockchains compatible with smart contracts. XinFin is capable of processing around 2000 transactions in a single second, with each transaction needing a minimum of two seconds to be finalized.


It is essentially a centralized blockchain ledger, and the majority of its applications have been focused on managing transactions associated with the Internet of Things. Its centralized form has resulted in several problems for it, such as security issues, which have led to a significant increase in the number of hacking attacks that have taken place over the past few years.

Algorand (ALGO) is a cryptocurrency that was designed to solve problems that other cryptocurrencies, such as Ethereum, are unable to manage. It is most commonly referred to as a Layer-1 blockchain. It handles approximately 1300 transactions every second; nevertheless, because to its POS consensus, there have been problems with whales trying to take control of the system.

Hashgraph of the Hedera (HBAR)

It’s not entirely clear that it complies with the ISO 20022 standard. The Hedera Hashgraph is a distributed ledger technology that functions differently than blockchains but having properties that are comparable to those of blockchains. It will allow an unprecedented transaction speed of 10,000 transactions per minute (tpm), with the goal of resolving problems associated with blockchains. In addition, it has been reported in reports that this system has an enormous 500,000 tpm.

Because Hedera Hashgraph does not require miners to validate transactions, it processes them with the help of a feature known as directed acyclic graph. This eliminates the requirement to arrange the transactions in blocks.

Quant (QNT)

By utilizing its compatibility network, which binds together all blockchains through the use of a single operating system, Quant is a protocol that has the goal of resolving compatibility difficulties that have arisen between leading blockchains such as Bitcoin and Ethereum.

Additionally, EVMs are supported by the protocol, and its native currency has been put to use to both fuel and incentivize developers actively engaged in the process of designing and developing decentralized applications. Quant is sometimes referred to as an Ethereum Layer-2 chain, despite the fact that it does not require any modifications to its core chain in order to perform as designed.

Regarding Ripple and its connection to ISO 20022, as well as:

At the moment, Ripple is ranked in second place among the most successful financial technology businesses in the United States of America. In the present day and age, the digital currency known as XRP, which is issued by the company, is not only strictly compliant with the ISO 20022 standard but also has a place among the most highly valued cryptocurrencies in terms of market capitalization.

Since Ripple also holds a position in the ISO 20022 standard body, this indicates that the company has an important involvement in the development and implementation of the ISO 20022 standard, providing the necessary guidance and suggestions for the ISO 20022 standard to be a worthy competitor. Since Ripple also holds a position in the ISO 20022 standard body, this means that the company has an important involvement in the development of the ISO 20022 standard.

Ripple’s systems are constructed in such a way that it makes Ripple a digital transfer network and protocol, providing massively high-speed transactions and deals between both banks and financial companies. This is in comparison to Bitcoin, which still sits at the top of all cryptocurrencies, is said to be a gentle giant, and is commonly used to store value. Bitcoin is still considered to be the most valuable cryptocurrency.

Ripple’s XRP not only provides the features that were discussed above, but it also has the ability to be used as collateral and is frequently used for rapid currency conversions in addition to supporting international remittances. Other uses for this cryptocurrency include supporting international remittances. Ripple makes use of a consensus that is managed by polls in order to sustain the high-speed consensus. During these polls, nodes are required to authenticate and verify the originality of the transfer that is taking place. The use of this particular kind of consensus also helps to advance the idea of decentralization.

XRP is Ripple’s primary currency, and it is the one that is being used by banks and other financial institutions. However, Ripple’s subsidiary currency, Stellar Lumens (XLM), is primarily intended to support the development of digital currencies used by central banks (CBDCs). The XLM currency is not only utilized to fund CBDCs, but it also serves as an agreement basis for a variety of alternative currency conversions.

ISO 20022 has many benefits.

While ISO’s technical complexity may put some people off, the benefits it brings might significantly improve the way financial institutions function and even lead to lower transaction prices for customers. Following are some of ISO 2022’s benefits.

With ISO 20022, non-Latin characters will be supported, leading to greater interoperability between various financial systems, services, institutions, and businesses around the world. It is possible to categorize various messages by their characteristics and the mode of payment they employ.

Aside from ensuring a significantly higher quality of data, ISO 20022 will offer the foundation for more effective methods and systems used to detect fraudulent activity when combined with autonomous systems. Less human error is likely to creep in when more autonomous technologies are in place.

Messages conforming to ISO 20222 will be used for a wide variety of purposes, such as regular banking, ACH transfers, online purchases, and even real-time financial dealings.

ISO 20022 has some serious flaws.

While the aforementioned benefits are significant and necessary for the development of the financial sector, the drawbacks of adopting a new standard will persist.

The majority of banks may not have the sophisticated systems to support the transition to a new standard, which would require them to invest heavily in technology upgrades at a high cost. As a result, many institutions may not be able to meet the adoption schedules for ISO 20022 presented by SWIFT.

It will take a lot of effort and money to persuade large banks to invest in technology upgrades. Since these large banks are currently processing millions of transactions each day, it is crucial to give them the time they need to transition to the new standard and improve their systems.


To sum up, ISO 20022 is an industry standard that will undoubtedly cause a seismic shift in the financial sector by uniting the worlds of conventional interbank communication and cryptocurrency. This partnership will likely lead to widespread adoption of cryptocurrency usage across both legacy and blockchain-based infrastructures and businesses.

For the time being, we are unable to comment further on ISO 20022’s efficacy; however, if this standard becomes widely adopted, it will reduce the need for cryptocurrencies in the financial sector, but on the flip side, the TradFi and crypto industries will begin to bond together in unprecedented ways. Traders and investors may choose to monitor ISO 20022 compliant cryptocurrencies for price and adoption rate changes following the significant ISO 20022 transition.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.