Here’s Why SWIFT Chooses XRP, XLM, and 6 Others

Key Points

1. The ASOBANCA Law Journal (November 2022) highlights the inefficiencies of the traditional SWIFT system and the alignment of selected cryptocurrencies with ISO 20022 standards.

2. Ripple (XRP) was the first member of the ISO 20022 Standards Body in 2020, leveraging RippleNet and blockchain APIs for improved payment capabilities.

3. The eight selected cryptocurrencies (XRP, XLM, XDC, QNT, HBAR, ALGO, MIOTA, ADA) are noted for solving key problems in the old SWIFT system, such as high fees and liquidity issues.

4. The integration of digital assets into ISO 20022 is described as a documented and formalized trajectory, with Ripple leading the way and other blockchains following.

5. The transition to ISO 20022 by international banks and financial institutions is expected to enhance the efficiency and prominence of blockchain-based financial messaging.