A recent post from Vet (@Vet_X0), a prominent figure in the cryptocurrency community and a validator on the XRP Ledger (XRPL), highlighted a critical clarification about the widely discussed topic of ISO 20022 compliance in the crypto space.
In his post, Vet points out the ongoing confusion around cryptocurrencies being labeled as ISO 20022 compliant. According to the information shared, these claims are misleading, and no cryptocurrency currently holds compliance status under the ISO 20022 messaging standard.
The ISO 20022 standard is designed to provide a universal format for exchanging financial messages and is widely adopted by financial institutions for international transactions. However, as noted by the official statement shared by Vet, “Cryptocurrencies are not inherently ISO 20022 compliant.”
This directly counters the narrative that has spread across various online platforms, particularly regarding tokens like XRP, which many believe to be ISO 20022 compliant. As the post clarifies, “There is a lot of confusion and misleading information on the web referring to ISO 20022 compliant cryptocurrencies, but those statements are not correct.”
The Relationship Between Ripple and the ISO 20022 Standard
Notably, Ripple Chief Technology Officer (CTO) David Schwartz confirmed that XRP has nothing to do with the ISO 20022 standard in 2023. Vet’s post further elaborates that cryptocurrencies, including XRP, are not governed or registered by ISO 20022. However, Ripple is part of the ISO 20022 Standards Body, and the first partner to focus on Distributed Ledger Technology (DLT).
The ISO 20022 standard ensures consistency and interoperability in financial messaging, and it has no direct bearing on the compliance status of cryptocurrencies themselves.
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The ISO 20022 Standard and Cryptocurrencies
For clarity, the ISO 20022 framework is meant for financial institutions that handle cross-border payments and securities trading. It enables institutions to adopt a common language and format for transactions, which significantly improves communication and reduces errors.
However, this standard is not intended for cryptocurrencies and is not issued or managed by any central authority. The post clarified that the ISO standard for managing Digital Token Identifiers (DTI) is ISO 24165.
Impel added Bitcoin to its ISO 20022 financial messaging API in 2022 as optional collateral for payments. However, this did not make Bitcoin ISO 20022 compliant. Cryptocurrencies, including XRP, may have the potential to work alongside systems that use the ISO 20022 standard, but they are not compliant with it.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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