📚Last Guide to ISO 20022 That Every Crypto User Will Ever Need! $XDC $ALGO $QNT $HBAR $LCX
Before we start: by 2025, it will be the universal standard for payment systems for all reserve currencies and will support 87% of transactions globally.
A short and sweet 🧵thread 🧵
Before we start: by 2025, it will be the universal standard for payment systems for all reserve currencies and will support 87% of transactions globally.
A short and sweet 🧵thread 🧵
👉 SO WHAT IS IT?
ISO 20022 is a standard for the electronic exchange of data between financial services within the payments industry. It is based on DLT (distributive ledger technology)
$QNT
ISO 20022 is a standard for the electronic exchange of data between financial services within the payments industry. It is based on DLT (distributive ledger technology)
$QNT
✋NOT CLEAR?
Suppose two people that speaks different languages have to communicate otherwise one of them will die. They speak only their native language: Chinese 🇨🇳 and English 🇬🇧
🤔Can you guess what will happen?
Suppose two people that speaks different languages have to communicate otherwise one of them will die. They speak only their native language: Chinese 🇨🇳 and English 🇬🇧
🤔Can you guess what will happen?
#IS20022 is so important because will provide a common language for machines and people to exchange information about financial business and no one will “die” 🤣
⚠️Today, not every financial business has the same standards and data exchange can be very difficult.
⚠️Today, not every financial business has the same standards and data exchange can be very difficult.
🚨For example the ISO 20022 will harmonize formats and data components of different payment methods that previously could not function together.
Imagine that many businesses to communicate and exchange information are still using fax, email and other kind of manual processes.
Imagine that many businesses to communicate and exchange information are still using fax, email and other kind of manual processes.
#ISO20022 is going to change everything.
Will be apply to:
1️⃣Trade (Between companies, domestic and foreign)
2️⃣Cards (Mastercard & Visa)
3️⃣Payments (Domestic, Cross-boarder etc)
4️⃣Securities (stocks, bonds, tokens and ETF)
5️⃣Forex (FIAT currencies)
Will be apply to:
1️⃣Trade (Between companies, domestic and foreign)
2️⃣Cards (Mastercard & Visa)
3️⃣Payments (Domestic, Cross-boarder etc)
4️⃣Securities (stocks, bonds, tokens and ETF)
5️⃣Forex (FIAT currencies)
WHAT MAKES IT SO IMPORTANT?
💰NEW REVENUE STREAMS
Interconnection and the ability to enter more data in a consistent manner will improve liquidity management by providing a new level of financial communication.
💰NEW REVENUE STREAMS
Interconnection and the ability to enter more data in a consistent manner will improve liquidity management by providing a new level of financial communication.
📊MORE LIQUID BUSINESs/MARKETs
This will occur through the tokenization of assets such as equities and bonds. On a large scale, this can be achieved only if all financial markets use the same standard.
This will occur through the tokenization of assets such as equities and bonds. On a large scale, this can be achieved only if all financial markets use the same standard.
🔺NO BOTTLENECKS
ISO 20022 is the common standard that will eliminate fax, email communication and all the manual processes.
ISO 20022 is the common standard that will eliminate fax, email communication and all the manual processes.
🏷COST REDUCTION
In the payments industry for example, efficiency is typically measured by the percentage of transactions that go directly through the system from beginning to end without manual intervention. ISO 20022 is going to reduce that.
In the payments industry for example, efficiency is typically measured by the percentage of transactions that go directly through the system from beginning to end without manual intervention. ISO 20022 is going to reduce that.
🤝TRANSPARENCY AND COOPERATION
Governments around the world need to regulate and monitor what's going on in the country. The new standard should make an important difference in the fight against f. crime including the way institutions apply sanctions and AML/KYC controls
Governments around the world need to regulate and monitor what's going on in the country. The new standard should make an important difference in the fight against f. crime including the way institutions apply sanctions and AML/KYC controls
✅ We can wrap this up: ISO 20022 may seem very complex, but is simply a more detailed type of financial messaging protocol that will allow banks and financial institutions to interoperate more easily 🤞
❤️If you are a crypto user, you need to know that there are a few companies already compliant with the ISO 20022: the main already complaint are $XRP $XLM $XDC $IOTA $ALGO $QNT
🤞Rumored to be compliant $HBAR $LCX and $ADA
🤞Rumored to be compliant $HBAR $LCX and $ADA
🏦Crypto already compliant can be potentially integrate with central bank messaging systems and the databases of top financial companies like Visa and Mastercard.
For crypto like $BTC and $ETH will be harder to be in compliance, but no worries
For crypto like $BTC and $ETH will be harder to be in compliance, but no worries
⛓ ISO 4217 can interact with ISO 20022. The ISO 4217 can assign a code in the form of three-letters, to the crypto that can’t be compliant.
This 3 letters are similar to the ticker that they already have like $BTC and $ETH 😁
This 3 letters are similar to the ticker that they already have like $BTC and $ETH 😁
🚨It is too early to say what impact this will have on the crypto industry. There are two potential scenarios, bad and good.
☹️The bad scenario represents the possibility that the ISO 20022 will make crypto unuseful
☹️The bad scenario represents the possibility that the ISO 20022 will make crypto unuseful
😁The good scenario represents a merge between the crypto space and the traditional finance.
In your opinion, what will be the most probable scenario?
In your opinion, what will be the most probable scenario?
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