Beginning this month, CommBank will utilize Ripple’s XRP to adopt the ISO 20022 standard for cross-border payments.
Within the following three years, the bank intends to entirely transition all its transactions to ISO 20022.
Over the XRP Ledger, Ripple’s native cryptocurrency XRP has been built to permit fast cross-border settlements. In a recent development, CommBank, the largest financial institution in Australia, announced that it would use Ripple’s XRP and the ISO 20022 standard for cross-border payments.
It will begin moving all its cross-border payments to the XRP standard this month and finish the move over the next three months. Two days ago, CommBank published a notice of scheduled maintenance, which was the most recent announcement.
However, one of the followers questioned whether this maintenance was included in the platform’s ISO 20022 upgrade. In response, CommBank stated:
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.
Ripple has collaborated with financial institutions to expedite cross-border payments for some time. RippleNet, which is based on blockchain technology, is utilized by over 200 banks and financial institutions globally.
The RippleNet system is already compliant with ISO 20022, the de facto global standard for modern payments. “To help facilitate this next step in global interoperability and to fulfill the evolving demands of our customers, Ripple has joined the ISO 20022 Standards Body as the first member focused on Distributed Ledger Technology (DLT),” the company explained.
Ripple’s Access Point to CBDC
This is an amazing development, but CommBank is not the first Australian bank to embrace this standard for interbank correspondence. The National Australia Bank (NAB) began using ISO 20022 via RippleNet in March of this year.
Stellar Lumens is the only other blockchain platform to embrace this standard, joining Ripple. Through the Society for Worldwide Interbank Financial Telecommunication, ISO 20022 is the global standard for sending electronic messages between financial institutions (SWIFT).
This allows both Ripple and Stellar to work on digital currencies issued by central banks (CBDCs). The ISO 20022 will completely alter the interaction between digital assets and fiat money systems.
Earlier this year, German digital payments company Novatti Group Limited announced a partnership with Ripple to produce AUDC, a stablecoin backed by the Australian Dollar. In addition, the stablecoin Aurei (AUR) will soon be accessible on the XRP ledger. Additionally, the Australian CBDC will be compatible with other blockchain systems, such as Songbird and Flare.
As of this month, the European Union is likewise moving to ISO 20022 in order to ease cross-border transactions involving high-value items. Experts believe that ISO-compliant cryptocurrencies will alter the landscape of digital assets. They also expect that regulators will change their attitude on ISO 20022 assets.