Smart contract protocol Algorand continues to quietly dominate when it comes to the mainstream adoption of crypto and digital assets. Covered: Crypto as Future of Payments Why SWIFT is critical to the report What is ISO 20022? Why the International Association for Trusted Blockchain Applications matters Crypto as Future of Payments Hosted by the OMFIF […] The post JP Morgan, Visa, Swift and Algorand Release “Future of Payments” Report appeared first on CryptosRus.

JP Morgan, Visa, Swift and Algorand Release “Future of Payments” Report

Smart contract protocol Algorand continues to quietly dominate when it comes to the mainstream adoption of crypto and digital assets.

Covered:

  • Crypto as Future of Payments
  • Why SWIFT is critical to the report
  • What is ISO 20022?
  • Why the International Association for Trusted Blockchain Applications matters

Crypto as Future of Payments

Hosted by the OMFIF (Official Monetary and Financial Institutions Forum) and released in the form of a report this week, Swift, Visa, JP Morgan, Algorand, and Metamui met on Tuesday to discuss the Future of Payments in a tokenized world.

OMFIF, a think tank for Central Banks, released the report on Tuesday. Titled “Evolution or Revolution: Time for renewal in global cross-border payments,” the report offered up the multitude of benefits crypto can offer in terms of enabling frictionless cross-border payments.

The report finds that “market participants, regulators, and technology companies are poised to transform global cross-border payments into an industry fit for the digital age.” Indications that the embrace of crypto as a solution to this transformation is clear in the report.

Recommended: Three Top Projects On Algorand You Have To Check Out

Why SWIFT is Critical to the Report

Swift is a crucial piece of this puzzle. “SWIFT is a vast messaging network used by banks.” More than “11,000 SWIFT member institutions sent over 35 million transactions per day through the network in 2020.” Swift is the system that banks use to transfer money worldwide. It is the payment rails of the world economy.

However, it is a legacy system from the ’70s, wrought with inefficiencies. Swift is looking to embrace crypto as a means to overhaul its current system, as this report indicates. Just how big this would be for crypto cannot be understated. Why? Well, who uses Swift?

  • Banks
  • Brokerage Institutes and Trading Houses
  • Securities Dealers
  • Asset Management Companies
  • Clearing Houses
  • Depositories
  • Exchanges
  • Corporate Business Houses
  • Treasury Market Participants and Service Providers
  • Foreign Exchange and Money Brokers

What is ISO 20022?

This leads us to ISO20022, a new interbank messaging format that SWIFT is rolling out for faster cross-border payments and settlements. In October, the Federal Reserve Board announced that they would adopt this system for their Fedwire system in 2023.

It’s “an improvement over the existing payments infrastructure that’s slower and more costly.” As SWIFT notes on their website, “the ISO 20022 Programme will change the way you send cross-border payments and reporting instructions. Find out what this means for you.”

The report from OMFIF mentions specifically that regarding cross-border payments and “collaborating with central banks, commercial banks, and fintech’s,” their “comprehensive strategy includes innovating in areas “such as ISO 20022 adoption” to meet industry needs for speed, predictability, and transparency.”

It also mentions that “high-value payments systems are in the process of migrating to ISO 20022 standards”. There is no doubt that crypto is in the plans for all of this–for remittances, high-value systems, and CBDC’s of course.

Recommended: Former Citibank Exec Launches Massive 1.5 Billion Dollar Crypto Fund; Taps Algorand As Partner

Why the International Association for Trusted Blockchain Applications matters

A group called International Association for Trusted Blockchain Applications (INATBA) is comprised of certain global entities who seek to meet the compliance standards required by the standards of ISO 20002. More precisely, it “offers public and private developers and users of DLT (Distributed Ledger Technology) a global forum to interact with regulators and policymakers and bring blockchain technology to the next stage.”

Some of the notable members include AAVE, Accenture, Algorand, Barclays, Cardano Foundation, Dash, Ledger, Quant, SAP, Siemens, VeChain, and SWIFT themselves.  

One interesting piece of the report was a section written by Algorand Economist Co-Pierre Georg titled: “Five Things We Learned Building a Blockchain-Based CBDC.” While there is a lot to be gleaned from this section, Georg finished his report saying: “CBDC’s have the potential to become the same massive value creation machines as the internet.” 

In summary, we are moving towards mass adoption of digital assets to facilitate cross-border payments in the form of high-value payment systems at the government and banking level, remittances, and CBDC’s.

This report shows that collaboration between the big players in trad-fi like VISA and in crypto, like Algorand, is well underway. The future of payments will include digital assets as the backbone. 

Recommended: Did You Know El Salvador’s Chivo App Runs On Algorand?

The post JP Morgan, Visa, Swift and Algorand Release “Future of Payments” Report appeared first on CryptosRus.