Honestly, I think the SWIFT payment system upgrade is a pretty major turning point. With the shift to iso20022, the entire financial system is set to change.

This process, which started in 2023, is already moving along in terms of implementation now—but essentially, it means that financial data elements will be standardized. The idea is that the barriers between banks and the cryptocurrency market will become much lower.

What will change is that, first of all, cross-border payments will become extremely efficient. Transaction costs will be reduced, and speed will increase. Until now, banking systems and the crypto asset market have been operating separately, but with the standardization of iso20022, interoperability will improve all at once.

From a regulatory perspective, this is also important, because anti-money laundering measures will become more strict. Banks will be able to track and monitor customer transactions more appropriately, and it will be easier to meet regulatory requirements like the FATF Travel Rule. In other words, the trustworthiness of the cryptocurrency market will improve.

Personally, I’m especially focused on the impact on CBDCs. It’s highly likely that the standardized framework of iso20022 will be leveraged in the development and adoption of central bank digital currencies as well. I think this will be a factor that increases the overall maturity of the crypto market.

By making it easier to integrate crypto assets into traditional banking systems, it’s certain that adoption and usage will expand. Transaction transparency will also improve, and the barriers to entry for institutional investors will become lower.

In summary, SWIFT’s migration to iso20022 will bring broad benefits to banks, the cryptocurrency, and the digital currency markets. From reducing transaction costs to improving regulatory compliance, it will have a positive effect on all stakeholders. Moving toward a more standardized financial system will open the way for further growth in the crypto asset market.

As a disclaimer, this information is general market commentary. Before making any investment decision, you should always do your own research.