Sensei's Insights: ISO 20022 Upgrade Goes Live: Significance for Global Finance and XRP

Understanding ISO 20022 and Its Global Significance

ISO 20022 is a global messaging standard for financial communications, created to replace the patchwork of legacy formats used by banks and payment systems. It provides a common, data-rich language (using XML/JSON) that enables seamless exchange of payment information across institutions and borders (FRB Services). This modernisation promises major improvements: richer data in payment messages, fewer errors, improved compliance (e.g. sanctions screening), and end-to-end interoperability between formerly siloed networks (Wipfli). In short, ISO 20022 is "a universal language" for money transfers, allowing banks worldwide to finally "speak the same language" in cross-border transactions (Payments Dive).