Fed Reserve Adopts ISO 20022 Format for Payments That Ripple Is Compliant With
According to the press-release that came out on Monday, the US Fed Reserve Board spread the word that all Fed Reserve banks are going to implement the ISO 20022 system for the Fedwire Funds Service (FFS).
Curiously, Ripple’s blockchain-based payments are already compliant with ISO 20022.
Fed-based real-time payments to run on the new standard
This new format of messaging allows enhancing real-time payments both at home and cross-border ones. Besides, it will enable banks and other institutions to use measures against money laundering.
Also, the Fed Board asks the public to comment on the plan for enabling the FFS to start running on ISO 20022. The Board also suggests that the banks do not take three stages to adopt the new message format but switch to it just within one day.
FFS now runs on the same system as Ripple
FFS enables real-time settlements run by the Fed Reserve Banks. The system enables financial institutions and corporations to make fast transactions in a secure manner.
ISO 20022 was created by experts of the International Organization for Standardization – a non-government organization that deals with publishing standards for a wide range of spheres.
On October 1 last year, Ripple’s senior vice president of product Asheesh Birla took to Twitter to announce that Ripple had already been compliant with ISO 20022 and, therefore, is ready for 2030. He believes the new standard together with RippleNet will completely change the industry of payments within the next ten years.Source