ISO 20022 Standard Challenges Bitcoin, Boosts XRP in Payment Landscape
The implementation of ISO 20022, an international standard for electronic data interchange between financial institutions, is gaining attention in the digital asset space. According to crypto researcher SMQKE, this new messaging standard could reshape the competitive landscape for major cryptocurrencies like Bitcoin and XRP.
XRP has been highlighted as a potential beneficiary of ISO 20022's integration into traditional payment infrastructure. SMQKE notes that XRP operates on a blockchain-based payment system developed by Ripple, making it compliant with the new messaging standard. This could allow XRP to work alongside central bank digital currencies (CBDCs) within centralized payment environments.
The introduction of standardized messaging could also undermine Bitcoin's use case as an alternative to centralized financial systems. SMQKE suggests that 'ISO 20022 may cut the knees off Bitcoin while benefitting XRP,' emphasizing a future in which institutional and government-backed solutions occupy a central role in finance.