ISO 20022 is shaping up to be the catalyst that changes the way financial institutions communicated, and there are 5 altcoins leading the charge.
In the latest video, BitBoy Crypto, a famous Youtube Channel, has broken down exactly what ISO 20022 is, what this means for the world of finance, and what coins are leading the future of global transactions.
What is ISO 20022?
First of all, let’s find out what ISO 20022 is. ISO 20022 is an open global standard for financial information. It provides consistent, rich, and structured data that can be used for every kind of financial business transaction.
ISO 2002 messages for cross-border payments cash, and reporting business, starting from August 2022 on an opt-in basis. In November 2022, for greater availability, there will be a three-year period where the old and new systems will coexist allowing banks to adopt at their own pace by November 2025. The old system will be retired and the innovative migration to ISO 20022 will be complete. The system is already utilized by over 70 countries worldwide including Switzerland, Japan, India, and China.
ISO 20022 creates new opportunities for over 70 countries adopted it.
ISO 20022 will account for 80% of transaction volumes, 87% of transaction value globally. The pros for every country to adopt this standard heavily outweigh the cons, the compatibility speed, and efficiency are incomparable to the old standard.
The straight-through processing will reduce maintenance costs and lessen the need for banks to intervene, which leads to fewer delays for their customers. The enriched data and analytics will help identity fraud in money laundering. The reasons why go on and on and on but overall this global transition to ISO 20022 have a profound impact on the worldwide financial sector.
What Coins Are Leading The Future Of Global Transaction?
The first member of the ISO 20022 standard body is XRP. It’s a big reason why people have been so bullish on XRP. XRP is an open-source, permissionless, and decentralized technology. Benefits of the XRP include its low-cost, high speed, scalability, and inherently green attributes.
XRP is literally shaping the future of cross-border payments while simultaneously reducing operational costs thanks to their on-demand liquidity (ODL).
The game’s second coin on the ISO governing body is the Ramsey Bolton of crypto, Stellar Lumens (XLM). Stellar (XLM) is a peer-to-peer (P2P) decentralized network created in 2014 by The Stellar Development Foundation or Stellar.org. The network officially launched in 2015 with the purpose of connecting the world’s financial systems and ensuring a protocol for payment providers and financial institutions.
They are a part of this new standard because international juggernaut IBM uses Stellar to run their stablecoin issuing operation. So XRP and XLM are on the standards body and are sort of running the show.
XDC Network (XDC)
The next altcoin on the list is XDC Network (XDC). The XDC Network (formerly called XinFin Network) is an enterprise-grade, EVM-compatible, hybrid blockchain, equipped with public and private states and interoperable smart contracts.
A highly optimized, bespoke fork of Ethereum and J.P. Morgan’s (now ConsenSys’s) Quorum, the XDC Network reaches consensus through a delegated proof-of-stake (dPoS) mechanism, which allows for two-second transaction time, near zero gas fees, and over 2,000 transactions per second (TPS).
Their website states their protocol, gives enterprises a flexibility to convert the legacy system operation from a hub and spoke single point of failure operation to a distributed or decentralized system.
The next altcoin on the list is IOTA (MIOTA). IOTA is a distributed ledger with one big difference: it isn’t actually a blockchain. Instead, its proprietary technology is known as Tangle, a system of nodes that confirm transactions. The foundation behind this platform says this offers far greater speeds than conventional blockchains — and an ideal footprint for the ever-expanding Internet of Things ecosystem.
They also have a grasp on distributed ledger technology. They have big plans for smart cities and they define themselves as an open feeless data and value transfer protocol.
the last but certainly not least on the compliant list is Algorand (ALGO). Algorand is a self-sustaining, decentralized, blockchain-based network that supports a wide range of applications. These systems are secure, scalable and efficient, all critical properties for effective applications in the real world. Algorand will support computations that require reliable performance guarantees to create new forms of trust.
ALGO is a self-proclaimed world’s most decentralized scalable and secure blockchain infrastructure, not only do they have a killer marketing team, every smart contract that runs on the AVM is written in the teal language. This allows the ALGO network to process 10,000 of transactions per second and their time of finality five seconds or less.
Join us on Telegram
Follow us on Twitter
Follow us on Facebook