![]() Is identical to the ISO 4217 code for the European Unit of Account 9. The following chart shows some ways in which crypto codes could clash with current ISO 4217 currency identifiers: CryptoĬonflicts with ISO 4217 because BT stands for Bhutan.Ĭonflicts with ISO 4217 because ET stands for Ethiopia. But the “BT” representing “Bitcoin” presents a conflict because it already officially stands for Bhutan in ISO 4217. The “X” denotes that no country is associated with the asset - similar to the codes for gold (XAU) and silver (XAG). For example, consider “XBT,” the unofficial ISO code for Bitcoin. The existing code definition method raises issues for crypto codification, because many crypto codes conflict with existing country codes. For example, in “CAD,” the “CA” stands for “Canada” and the “D” stands for “dollar.” In an official currency code, the first two letters are generally derived from the alphabetic country code (defined in ISO 3166) and the last letter is generally derived from the official currency name. ISO codes for fiat currencies (Source: IG) If a bank user transfers another bank user $500 USD, they would automatically be using standards decided by the ISO 4217 currency code list that defines the US Dollar as “USD.” Aside from currency codes, ISO also assigns International Securities Identification Number (ISIN) codes to securities including stocks, bonds, and derivatives. This facilitates international transactions and decreases the risk of errors. According to the standard, each currency is represented by three letters: “USD” for US Dollars, “EUR” for Euros, and so on. ![]() This 4217 standard has been used for global bank payments and stock markets since 1978, when it was first codified. ISO defines standards for fiat currencies under ISO 4217. What is the ISO 4217 Currency Identifier Standard? If ISO issues an official code for a crypto, such as Bitcoin or Ether ( ETH), that crypto will enter the database tables of top financial services like Visa and MasterCard. ISO standardized crypto identifiers are going to change the way crypto is used. What is the Role of ISO 20022 in Crypto?Ī crypto that complies with the ISO 20022 standard could be approved by a centralized bank that enables crypto payments. If a merchant wanted to import a bicycle into the US, the manufacturer would have to classify it using the ISO code or risk rejection at a shipping port. For instance, the ISO 4210 standard is used for bicycles. In some cases, the term “ISO” is used to describe products that were built according to a certain standard. The global financial industry is one of the many industries for which ISO sets standards. ISO’s catalog of standards includes 97 fields, covering healthcare, agriculture, engineering, shipping, weaponry, metallurgy, and more. To date, ISO has set over 20,000 standards, and continuously updates them by releasing technical reports, analyses, and publications. Through its standards, ISO aims to promote international trade and protect end users by ensuring the products being made are safe and of acceptable quality. This could lead to adoption by centralized banks and enable cross-border crypto payments through centralized financial institutions. However, in the new “ISO 20022” standard, cryptos could be assigned ISO codes if they are compliant with ISO 20022. Given the lack of ISO codes in the crypto world, cryptos currently use unofficial ISO codes, such as “XBT” for Bitcoin. For example, the US Dollar is assigned the code “USD” in this standard. Currently, financial institutions rely on the ISO 4217 standard to identify currencies for global transactions. ISO has largely ignored cryptos until the last few years, when CDBCs ( Central Bank Digital Currencies) started gaining momentum. An ISO code for Bitcoin ( BTC) could facilitate global mainstream adoption more than any other action. If an ISO standard is established, virtually all financial institutions in the world adopt it. ISO develops international standards for industrial, commercial, and proprietary use. ISO (International Organization for Standardization) is a non-governmental global organization based in Geneva, Switzerland. What Would Make a Crypto ISO-Compliant?.What Are Digital Token Identifiers (DTIs)?.What is the ISO 4217 Currency Identifier Standard?.
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