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CRYPTO NEWS DESK — 2022-02-06

What is ISO 20022?

Learn how the international ISO 20022 standard is driving the future of global payments, and bringing electronic finance into the 21st Century.

What is ISO 20022?

You may have heard about ISO20022, but what is it? At its simplest ISO20022 is a modern standard for financial data exchange. Let's review the frameworks that ISO standard 20022 exists in.

International Organization for Standardization

ISO is the acronym for the International Organization for Standardization which was founded in 1947 to develop open technical and business standards for industry and commerce. The group includes members from 165 countries around the world that collaborate and publish thousands of critical standards that help increase efficiency and productivity for adopters, as well as serving to protect consumers. Each of the many ISO standards are assigned a different number, for example ISO9001 deals with quality management systems and ISO14001 covers environmental management systems. The number 20022 was assigned by the ISO as the successor to the previous digital financial payment standard ISO15022 from 1995.

ISO 20022 Standard

The ISO20022 standard is designed to be a comprehensive body of standards for electronic data interchange (EDI) covering payments, securities, trade services, settlements, credit cards, debit cards and foreign currency exchange (sometimes known as Forex or FX). The standard defines formats like data elements and data types for both financial information transmission as well as the storage of that financial data. The format itself is an extension of the popular Universal Modeling Language (UML) and Extensible Markup Language (XML) definitions. The original XML standard was first published by the World Wide Web Consortium (W3C) in 1998, and is currently a fundamental part of HTML5, the latest and greatest version of the HTML specification that drives the modern internet. The bottom line is that the goal of ISO20022 is to be the ultimate financial standard to move global finance into the 21st Century. For example, the SWIFT network (Society for Worldwide Interbank Financial Telecommunication) has stated that they are working to replace their aging, slow and costly network, known as "MT", with an efficient modern system, and that replacement will be based on ISO20022. As the SWIFT network handles over 40 million financial transactions every day, it is important this the network be fast, complete and accurate, which are all goals of the ISO20022 standard. The SWIFT group's MT and ISO20022 systems will run in parallel for 3 years, until 2025, during the so-called SWIFT coexistence phase, after which the MT system will be obsoleted according to schedule. Banks and financial organizations will gain lightning-fast settlement optimizations, which will in turn benefit consumers with quick transactions and lowered fees.

ISO 20022 Registration Management Group

The Registration Management Group, or RMG, is the supervising body for ISO20022. Founded in 2004, the RMG includes representatives from over 20 different countries including the United States, the United Kingdom, Canada, Australia, France, Germany, Italy, Japan, India and China. Additionally, the RMG includes many well-known financial companies and organizations including MasterCard, Visa, SWIFT, RippleNet, the European Central Bank and the Bank of England. Here, alongside some of the largest and most powerful financial entities in the world, crypto fans may notice that the company that created the XRP cryptocurrency, Ripple, is represented through their RippleNet organization, a growing global payments network of hundreds of member financial institutions.

ISO 20022 Compliant Crypto Coins

Ripple's XRP is a fully ISO20022 compliant cryptocurrency, and only a handful of the thousands of cryptocurrencies can make this claim. Other compliant crypto currencies include Stellar's Lumen (XLM), along with the XDC Network's XinFin (XDC), the IOTA Foundation's IOTA (MIOTA) and the Algorand Foundation's Algorand (ALGO). These companies are at the forefront of the move to a modern integrated financial world, and these crypto networks should be able to integrate in more seamless ways than other non-ISO20022 coins that often suffer from liquidity issues due to limited coin pairings, incompatible coin blockchains requiring wrapped coins or centralized crypto bridges dependent on 3rd party management, and managed liquidity pools. RippleNet claims to resolve these issues with what it calls On-Demand Liquidity (ODL). RippleNet's ODL service leverages XRP as an almost instant bridge between currencies to reduce costs and locked capital required by pre-funding of destination accounts. In other words, old financial networks are so slow and disjointed that some institutions worked around the problem by pre-depositing funds in disparate pools, attempting to manage the accounting themselves in order to work around tediously slow settlements through the old MT SWIFT system, etc. With ODL this is no longer necessary as XRP can handle the fund conversion in seconds with complete finality, unleashing businesses capital to work for their business instead of managing liquidity. This demonstrates the power and efficiencies invoked by ISO20022 compliant networks, which are augmented by the advantages of cryptocurrency blockchain technology like transparency, speed and security.

Future of ISO 20022

The International Organization for Standardization indicates that, by the year 2025, ISO20022-compliant systems will support 80% of global transaction volumes and become the global standard of all major financial activity for all reserve currencies held by central banks. This tends to imply Central Bank Digital Coins (CBDCs) will also likely be compatible with ISO20022. Finally, as with some other ISO standards that target customer satisfaction and product safety and quality, the ISO20022 standard will ultimately benefit consumers who won't have to help bear the financial and temporal burdens of high overhead and delays intrinsic to the 20th-Century financial systems that the 21st-Century ISO20022 standard will help replace. You can learn more at and also follow the latest news and prices for XRP, XLM, XDC, MIOTA and ALGO at The future of crypto and finance sound very exciting indeed!

— Mark of Bidya News - Bidya Crypto News and Analysis

Keywords: ISO, EDI, UML, XML, SWIFT, RMG, Mastercard, Visa, Ripple, RippleNet, Central Banks, CBDCs, XRP, XLM, XDC, MIOTA, ALGO, ODL, Blockchain, ISO 20022, ISO20022


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