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(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)
Seeds of Wisdom
RIPPLE’S ISO 20022 COMPLIANCE PAVES WAY FOR XRP IN TRADITIONAL PAYMENT SYSTEMS
▪️Ripple is ISO 20022 compliant, a move many say will benefit XRP.
▪️As a cross-border enabler, Ripple’s success can translate to XRP’s growth.
Market participants believe Ripple’s adoption of ISO 20022 could open the way for XRP’s integration into traditional payment systems. While XRP and ISO 20022 are unrelated, Ripple’s compliance with this industry standard for financial messaging may benefit the coin.
Ripple’s Connection With ISO 20022
ISO 20022 is a flexible framework that allows users and message development organizations to define information according to an internationally agreed-upon approach. This standard provides a structured and data-rich common language readily exchanged among corporations and banking systems.
This standard, developed by the International Organization for Standardization (ISO), also provides the opportunity for enhanced analytics. This can lead to offering valuable new levels of payment services to financial institutions’ customers.
Approximately 72% of institutions connected to the SWIFT network anticipate switching to ISO 20022 by November 2025. Additionally, over 70 countries, including Switzerland, China, India, and Japan, anticipate adopting ISO 20022 into their payment systems, according to a CNF report. The messaging system is set for smooth harmonization and efficiency in cross-border transactions.
SWIFT, which handles a substantial share of cross-border payments, is leading the transition from its earlier messaging system (MT) to ISO 20022. The move aims to standardize financial communications and streamline payment processes, allowing financial institutions to operate globally.
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Ripple, a key player in blockchain-based payments, joined the standards body in 2020.
Ripple’s participation allows its payment network, RippleNet, to integrate with other ISO 20022-compliant institutions. This compliance makes it easier for RippleNet to conduct cross-border transactions through a unified Application Programming Interface (API).
The company’s involvement with ISO 20022 has raised discussions about how it might impact XRP. The token does not comply with the messaging standard despite Ripple’s adherence to ISO 20022. Some crypto community members claim XRP complies with ISO 20022 due to Ripple’s participation in the standard.
Ripple’s Chief Technology Officer, David Schwartz, recently refuted this claim, emphasizing that the token has nothing to do with ISO 20022. He argues that ISO 20022 is a messaging standard, while XRP functions entirely as a cryptocurrency.
Possible Benefits for XRP
Although XRP is not directly compliant with the messaging standard, it can still benefit from Ripple’s alignment with the framework. Ripple’s compliance may facilitate XRP’s integration into established banking institutions.
For instance, Ripple’s payment solutions, especially On-Demand Liquidity (ODL), may gain more popularity as financial institutions switch to ISO 20022.
ODL allows faster, cost-effective cross-border settlements using XRP as a bridge asset between different fiat currencies. XRP’s faster transaction speed could entice financial institutions seeking efficient cross-border payment options to adopt the token.
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Furthermore, Ripple’s involvement with ISO 20022 may create new opportunities for XRP to be integrated into the wider financial ecosystem. Overall, this might impact the price of the coin, up 1.25% as of writing to $0.5389.
@ Newshounds News™
Source: Crypto News Flash
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UAE STABLECOIN ISSUER GETS NOD FROM CENTRAL BANK
With Tether waiting in the wings, AED Stablecoin becomes the front-runner to launch the United Arab Emirates’ first regulated dirham-pegged token.
The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to AED Stablecoin under its Payment Token Service Regulation framework, the company said in a news release.
AED Stablecoin’s preliminary license approval makes it a frontrunner in the race to become the first issuer of a regulated dirham-pegged stablecoin in the UAE.
This development eases concerns about potential restrictions on crypto payments, which had arisen following the CBUAE’s recent release of its licensing framework, which prohibits crypto for payments unless it involves licensed dirham-pegged tokens.
If fully approved, AED Stablecoin’s AE Coin could serve as a local trading pair for cryptocurrencies in exchanges and decentralized platforms, while allowing merchants to accept it for goods and services.
The central bank’s licensing framework also bars algorithmic stablecoins and privacy tokens, favoring fully cash-backed assets.
Issuers are required to back their stablecoins with cash in a separate escrow fully denominated in dirhams within a UAE bank.
Alternatively, they may hold at least 50% of reserve assets as cash, with the remaining portion invested in UAE government bonds and CBUAE Monetary Bills with an average duration of up to six months.
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UAE’s crypto red carpet
AED Stablecoin is expected to face competition from Tether, the issuer of the world’s largest stablecoin by market capitalization, USDt.
Tether recently said that it has partnered with local firms Phoenix Group and Green Acorn Investments to introduce its own dirham-pegged stablecoin.
Meanwhile, the UAE’s crypto-friendly regulatory environment has been attracting major players.
OKX recently launched a retail and institutional trading platform in the UAE after obtaining a full license, which includes derivatives trading for qualified institutional investors.
Additionally, crypto exchange M2 has opened a new system that allows residents to directly convert dirhams into Bitcoin.
@ Newshounds News™
Source: CoinTelegraph
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Source: Dinar Recaps
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