LONDON (IT BOLTWISE) – The move to the ISO 20022 standard marks a significant turning point in international payments. While Ripple and Stellar are technically aligned with the new standard, the question remains which platform will prevail in the global financial system. Both networks offer different benefits, ranging from integration into existing systems to promoting financial inclusion.
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The introduction of the ISO 20022 standard represents a significant advancement in the world of financial news. This standard replaces the older MT formats, which were often unstructured and text-based, with XML or JSON formats that contain richer metadata. This shift enables more detailed and consistent data processing, significantly improving automation and analysis in banks and payment systems.
Ripple and Stellar are two of the most prominent players often mentioned in connection with ISO 20022. Ripple integrated into the ISO 20022 landscape early on and, with RippleNet, offers a platform that supports the new standard. This allows banks to transmit structured data without converting message formats. Ripple’s on-demand liquidity solution, which uses XRP as a bridge currency, is technically well aligned with the principles of ISO 20022.
Stellar takes a complementary approach optimized for speed and affordability. The network is designed to process transactions within seconds and at minimal cost. The Stellar Development Foundation has been studying how to map ISO 20022 messages to Stellar transactions to ensure interoperability. Stellar focuses on financial inclusion and accessibility, which is particularly beneficial for fintechs and humanitarian organizations.
The move to ISO 20022 has far-reaching implications for data transparency in digital finance. The standard provides a consistent structure for identifying counterparties and transaction purposes, making compliance easier. For compliance officers in crypto companies, this represents both relief and responsibility, as integrating ISO 20022 data into decentralized transaction systems is challenging.
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