The XRP cryptocurrency Ripple’s native has been designed in a way to facilitate instant cross-border deals through the XRP ledger. In the latest development, Bank of Australia’s largest financial conglomerate CommBank said it would use Ripple’s XRP standard and ISO 20022 for cross-border payments.
It will start migrating all its cross-border payments to standard XRP this month and will complete the migration of all payments made over the next three months. The latest announcement came two days ago when CommBank published a scheduled maintenance post.
Hi there. From November 2022 cross-border payments will start to migrate to ISO 20022 with all payments to be made and received using ISO 20022 by November 2025. Cross-border payments will be greatly simplified as a result. ^Delz
— CommBank (@CommBank) November 17, 2022
However, one of the followers asked if this maintenance was part of the ISO 20022 update on the platform. In response, CommBank said:
Hello. Starting in November 2022, cross-border payments will start migrating to ISO 20022 and all payments will be made and received using ISO 20022 by November 2025. Cross-border payments will be greatly simplified as a result.
Ripple has been working with banking institutions to facilitate faster cross-border payments for a while. Their RippleNet Blockchain-based is already very popular and is used by more than 200 banking and financial institutions worldwide.
The RippleNet solution is already compliant with the ISO 20022 standard, which is now becoming the de facto global standard for modern payments. “To help enable this next step in global interoperability and meet the changing needs of our customers, Ripple is now part of the ISO 20022 Standards Body, the first member focused on distributed ledger technology (DLT),” Ripple said.
Ripple’s gateway to CBDCs
While this is an exciting development, CommBank is not the first Australian bank to adopt this interbank correspondence standard. In early March this year, the National Australia Bank (NAB) began adopting ISO 20022 via RippleNet.
Along with Ripple, only one other blockchain platform, Stellar Lumens, has adopted this standard. ISO 20022 is the global standard for the exchange of electronic messages between financial institutions through the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
This opens the doors for both Ripple and Stellar to work on central bank digital currencies (CBDCs). ISO 20022 will completely change the way digital assets and fiat currency systems interact with each other.
Earlier this year, Novatti Group Limited (a Germany-based digital payments company) announced a partnership with Ripple to issue an Australian dollar-backed stablecoin, AUDC. Also, the Aurei (AUR) stablecoin will soon be available on the XRP ledger. The Australian CBDC will also be compatible with other blockchain platforms such as Flare and Songbird.
To facilitate high-value cross-border transactions, the European Union is also transitioning to ISO 20022 starting this month. Some experts believe that ISO-compliant cryptocurrency will change the landscape of digital assets. They also believe that regulators will ease their strict stance when dealing with ISO 20022 assets.
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