The 'Crazy XRP' People Were Right..... SWIFT And All Major Financial Institutions About To Adopt XRP

Summary

This video dives into the adoption of ISO 20022 standards, highlighting how XRP, through Ripple, is positioned to revolutionize cross-border payments. It emphasizes the shift from traditional banking systems to more efficient, synchronized, and risk-free financial transactions. The discussion includes insights from Chris Larson, co-founder of Ripple, from as far back as 2017, showcasing the foresight in Ripple's adoption of ISO 20022. With upcoming deadlines for financial institutions like the Federal Reserve and Swift, the video explores the growing influence of crypto technologies like XRP in mainstream financial systems, signaling a transformative change in global payments.

Takeaways

• 😀 XRP and Ripple are positioned to benefit from the upcoming global adoption of ISO 20022, a messaging standard for financial institutions.
• 😀 The integration of XRP with ISO 20022 is poised to bridge traditional finance and cryptocurrencies, enhancing interoperability.
• 😀 ISO 20022 adoption is expected to streamline cross-border payments, reducing delays and inefficiencies in the current financial system.
• 😀 Chris Larsen, Ripple's co-founder, highlighted the use of ISO 20022 in a 2017 presentation, demonstrating Ripple's future role in the financial sector.
• 😀 The Federal Reserve will implement ISO 20022 on July 14, 2025, marking a critical milestone in the global adoption of the standard.
• 😀 SWIFT, the global leader in remittances, is set to adopt ISO 20022 by November 2025, further solidifying the standard’s dominance in financial systems.
• 😀 Ripple’s use of the Interledger Protocol (ILP) enables simultaneous transactions across different ledgers, reducing settlement risks in cross-border payments.
• 😀 Chris Larsen’s 2017 demo illustrated how Ripple can coordinate cross-border payments and mitigate settlement risk with real-time validation.
• 😀 The current financial system operates in a ‘fax age’ of outdated technology, while ISO 20022 and cryptocurrencies offer a path to the 'internet age' for finance.
• 😀 As regulatory clarity in the U.S. is on the horizon with acts like the Genius Act and the Clarity Act, the crypto industry is preparing for significant mainstream integration.

Q & A

What is ISO 20022, and why is it significant in the context of global payments?

ISO 20022 is a global messaging standard that financial institutions are adopting to enhance the interoperability between traditional financial systems and cryptocurrencies. It allows for more efficient and secure cross-border payments by providing a rich and structured data format for transactions.

How is XRP positioned in relation to ISO 20022 and its adoption?

XRP, through Ripple, is strategically positioned to benefit from the adoption of ISO 20022. Ripple’s technology was designed to integrate with this messaging standard, and it has been working for years to position itself as a key player in the global financial network, particularly in cross-border payments.

Why is the speaker so confident that XRP will play a major role in the future of finance?

The speaker is confident because Ripple, through XRP, has been preparing for the adoption of ISO 20022 and other financial advancements for nearly a decade. The technology aligns with the global shift toward digital currency and real-time settlement, and Ripple has positioned itself to be a major beneficiary of this transition.

What is the significance of the Swift platform adopting ISO 20022?

Swift's adoption of ISO 20022 will improve the efficiency of international payments by providing a more coordinated and transparent process. It will allow Swift's member banks to leverage the global open network more effectively, reducing costs and improving the customer experience in global remittances.

How does Ripple’s use of the Interledger Protocol (ILP) enhance cross-border payments?

The Interledger Protocol (ILP) used by Ripple coordinates funds flow across multiple financial institutions' ledgers. This eliminates settlement risk and ensures that payments either execute completely or fail, providing real-time, secure, and transparent transactions without delays or uncertainties.

What does the speaker mean by 'settlement risk' in cross-border payments?

Settlement risk refers to the uncertainty and potential failure in cross-border payments, where funds may get stuck between different banks or intermediaries. This can lead to delays, additional costs, or failed transactions. Ripple’s technology eliminates this risk by ensuring that all payment steps are cryptographically validated and synchronized.

Why does the speaker describe the current financial system as being stuck in the 'fax age'?

The speaker uses the 'fax age' metaphor to describe how outdated and inefficient the traditional financial system is in comparison to the advancements in digital payments and cryptocurrencies. The shift towards ISO 20022 and technologies like Ripple aims to bring the financial system into the modern 'internet age' for finance.

What role does the U.S. Federal Reserve play in the adoption of ISO 20022?

The Federal Reserve is set to adopt ISO 20022 by July 14 of this year. This is part of the broader effort by major financial institutions worldwide to implement the standard, making cross-border payments more efficient and preparing the financial system for the integration of digital currencies like XRP.

What is the significance of the 2025 deadline set by Swift for ISO 20022 adoption?

Swift has set a deadline of November 2025 for the complete adoption of ISO 20022 by its member banks. This deadline is crucial as it represents the point at which the majority of the financial sector will fully embrace the new messaging standard, paving the way for greater interoperability with digital currencies like XRP.

How has Ripple been preparing for the adoption of ISO 20022 for nearly a decade?

Ripple, through its XRP technology, has been developing its systems and partnerships with financial institutions to ensure smooth integration with ISO 20022. Chris Larson, one of Ripple’s founders, demonstrated Ripple’s compatibility with this standard as far back as 2017, which laid the groundwork for its future role in the global financial system.