Australia’s largest financial holding implements the ‘Ripple (XRP) standard’. CommBank announced this month that it will leverage the altcoin project to implement the ISO 20022 standard for cross-border payments. In addition, the Bank plans to fully migrate all of its operations to ISO 20022 in the next three years.
CommBank will use this altcoin project for cross-border payments
The developers designed Ripple (XRP) to facilitate instant cross-border transfers via the XRP Ledger. In the latest development, CommBank, the Reserve Bank of Australia’s largest financial conglomerate, said they will use Ripple’s XRP and ISO 20022 standard for cross-border payments.
The bank will begin migrating all cross-border transactions to the XRP standard this month. It will also complete the transition to this standard for all payments made over the next three months. CommBank announced the latest development in a planned maintenance letter two days ago. However, one of the followers asked if this maintenance was part of the ISO 20022 upgrade on the platform. Responding to this, CommBank said:
Hello. From November 2022, cross-border payments will be made using ISO 20022 until November 2025. It will also begin to transition to ISO 20022 with all payments received. As a result, cross-border payments will be greatly simplified.
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
Ripple has been working with banking institutions for some time to facilitate faster cross-border payments. Blockchain-based RippleNet is already very popular. It is also used by more than 200 banking and financial institutions worldwide. The RippleNet solution is already compliant with the ISO 20022 standard, which has now become the de facto global standard for modern payments. Ripple made the following statement on this subject:
To enable this next step in global interoperability and meet the evolving needs of our customers, Ripple is now the first member to focus on Distributed Ledger Technology (DLT) as part of the ISO 20022 Standards Board.
Ripple’s gateway to CBDC
This is a very exciting development. However, CommBank is not the first Australian Bank to adopt this interbank correspondence standard. Earlier in March this year, the National Australian Bank (NAB) began adopting ISO 20022 through RippleNet. Along with Ripple, only another altcoin project, Stellar Lumens, has adopted this standard. ISO 20022, the global standard for the exchange of electronic messages between financial institutions through the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
This development 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 currencies interact with each other. Earlier this year, Novatti Group Limited announced that it has partnered with Ripple to issue AUDC, an Australian Dollar-backed stablecoin. In addition, the stablecoin Aurei (AUR) will soon appear on the XRP Ledger. It will also be compatible with other Blockchain platforms such as Australian CBDC, Flare and Songbird.
Meanwhile, the European Union is transitioning to ISO 20022 from this month to facilitate high-value cross-border transactions. Some experts say that the ISO-compliant cryptocurrency will change the digital asset landscape. They also think that regulators will loosen their strict stance on ISO 20022 assets.
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