What Is ISO20022?

Let’s start with….

What is ISO?

ISO (International Organization for Standardization) is a worldwide
federation of national standards bodies. ISO is a nongovernmental
organization that comprises standards bodies from more than 160
countries, with one standards body representing each member country.

What is ISO20022?

ISO 20022 = a worldwide language that helps financial systems talk to each other faster, more accurately, and with less confusion. It’s helping the world’s money flow better, and if you’re using digital payments, it’s making those faster, too.

So What’s My Understanding of ISO20022?

So imagine the world of finance as a giant group chat with all kinds of different people, banks, credit unions, and payment systems from around the world. Now, if each person in this chat is speaking a different language, it’s going to be chaos. It get confusing real quick and a lot will get lost in translation. One bank might be saying, “Send $100,” while another hears, “Send 100 bananas.” Not exactly efficient, right?

This is where ISO-20022 comes in. Think of it as the universal translator that makes sure everyone in this financial group chat understands each other perfectly. ISO 20022 is a global standard for financial messaging. Meaning its perfect for this group chat, because it’s a common language that financial institutions can use to communicate. That includes transactions, payments, and other important financial data.

So Why Is ISO 20022 A Big Deal?

1. Streamlined Communication: It uses a modern, super-detailed way of structuring messages. Kind of like, using full sentences instead of random text abbreviations. This structure helps prevent misunderstandings and errors in payments.

2. Global Compatibility: ISO 20022 is being adopted worldwide, which means banks from New York to Tokyo can exchange financial info more easily. So, a payment in Japan can be processed more efficiently by a bank in, Brazil.

3. Supports Digital Finance: With the rise of new financial tools (like cryptocurrencies and digital wallets), ISO 20022 is set up to handle digital payments and connect with blockchain platforms, potentially linking up with emerging systems like CBDCs (Central Bank Digital Currencies).

So, ISO 20022 isn’t a boring tech upgrade. It’s like giving the global financial system a high-speed internet connection after years of using dial-up. This means smoother international payments, faster bank transfers, and better integration for all those fancy digital tools shaping the future of money.

Use this link to stay current on Cryptocurrencies that are ISO20022
Compliant: https://www.iso20022.org/faq

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