Global financial messaging giant Swift has announced that it will adopt the ISO 20022 standard globally in March 2023. The global standard for cross-border payment flows is steadily evolving to ISO 20022.
It is interesting to note that Ripple has taken the lead in this transition, having built its RippleNet network with the ISO 20022 standards in mind from the beginning.
Exciting era for cross-border payments as #ISO20022 standard is globally introduced in Mar. 2023. @BNYMellon's Isabel Schmidt shares benefits for banks and customers with Swift's Stephen Lindsay at @Sibos. Read more in @Euromoney: https://t.co/rpOF3hswSy #payments #crossborder— Swift (@swiftcommunity) February 16, 2023
2020 saw Ripple become the first member focused on Distributed Ledger Technology (DLT) to join the ISO 20022 Registration Management Group (RMG) standards organization.
The use of ISO 20022 for international payments has only recently begun to expand. As a result, Ripple and its RippleNet customers were early adopters of ISO 20022 for cross-border payments.
Ripple's focus: utility
Ripple emphasized its focus on real-world utility, which includes non-fungible tokens (NFTs), central bank digital currencies (CBDCs) and sustainability at the beginning of 2023. It claims that a focus on real-world applications will help propel the coming age of CBDCs.
In this light, Ripple anticipates the launch of new CBDC pilot programs around the world and has thus prepared. James Wallis, VP of central bank engagements, predicts an emphasis on interoperable CBDC solutions that enhance cross-border payments.
Ripple's shift to utility extends to NFTs, with a second wave of NFTs exploring real-world use cases, such as real estate and carbon markets in the works.
Crypto's real-world utility also extends to sustainability-oriented initiatives, as blockchain and cryptocurrency are seen as playing a bigger role in the effort to combat climate change.