Big Changes Ahead: SWIFT ISO 20022 Upgrade Could Shake Up Crypto
- SWIFT to upgrade payment system to ISO 20022 in 2023, benefitting banks, crypto, and digital currency markets by standardizing financial data elements.
- Improving interoperability will reduce transaction costs, improve regulatory compliance, and advance adoption and growth in the crypto and digital currency markets.
SWIFT’s upgrade to ISO 20022 will benefit banks, crypto, and digital currency markets by standardizing financial transactions, improving cross-border payments, and reducing money laundering risk. It will also boost the adoption and growth of digital assets, as per ExchangeRates.
In 2023, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) will upgrade its payment system to the ISO 20022 standard, a move that will have implications for banks, crypto assets, and digital currencies.
The ISO 20022 standard aims to improve cross-border payments by standardizing financial transaction data elements. This standardization will make transactions faster, cheaper, and more transparent, benefitting banks and the crypto and digital currency markets.
The upgrade to ISO 20022 will enable banks to track and monitor their customers’ transactions better, reducing the risk of money laundering and other illicit activities. Additionally, it will make it easier for banks to comply with regulations such as the Financial Action Task Force’s (FATF) travel rule, which requires financial institutions to share customer information during transactions.
The ISO 20022 standardization will improve the interoperability between traditional financial institutions and digital assets for the crypto market. It will make it easier for crypto assets to be integrated into existing banking systems, allowing for increased adoption and usage.
Moreover, adopting the ISO 20022 standard may boost central bank digital currencies (CBDCs) by providing a standardized framework for their development and use.
In conclusion, the upgrade of SWIFT’s payment system to the ISO 20022 standard will have far-reaching implications for the banking, crypto, and digital currency markets.
The increased standardization and interoperability will provide benefits to all parties involved, from reducing transaction costs to improving regulatory compliance. The move towards a more standardized financial system will likely pave the way for greater adoption and growth in the crypto and digital currency markets.
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