Fed Reserve plans to adopt new format for local and transnational payments that RippleNet is already part of
Fed-based real-time payments to run on the new standardFFS now runs on the same system as Ripple
According to a press release that came out on Monday, the U.S. Federal Reserve spread the word that all Fed banks are going to implement the ISO 20022 system for Fedwire Funds Service (FFS).
Curiously, Ripple’s blockchain-based payments are already compliant with ISO 20022.
Fed-based real-time payments to run on the new standard
This new format of messaging allows for the enhancement of real-time payments both at home and cross-border. Besides, it will enable banks and other institutions to implement measures against money laundering.
Also, the Fed Board asks the public to comment on its plan to enable the FFS to start running on ISO 20022. The board also suggests that banks should not take three stages to adopt the new message format but switch to it in one day.
FFS now runs on the same system as Ripple
FFS enables real-time settlements run by Federal Reserve Banks. The system enables financial institutions and corporations to make fast transactions in a secure manner.
ISO 20022 was created by experts at the International Organization for Standardization, a nongovernmental organization (NGO) that deals with publishing standards for a wide range of spheres.
On Oct. 1 of last year, Ripple’s senior vice president of product, Asheesh Birla, took to Twitter to announce that Ripple had already been compliant with ISO 20022 and, therefore, is ready for 2030. He believes the new standard, together with RippleNet, will completely change the industry of payments within the next 10 years.