Degen

Today I learned a little about ISO 20022.

It’s a global financial messaging standard. Think of it like the grammar banks use to talk to each other.

Why Are Banks Moving to ISO 20022 Instead of Blockchain?

1. Legacy Systems Still Rule
Banks aren’t going to nuke decades of infrastructure overnight. ISO 20022 is a way to modernize without rebuilding the entire cathedral.

2. Regulation-Friendly
Blockchain is still a legal gray area in many places. ISO 20022 fits neatly into existing legal, audit, and compliance frameworks.

3. Private and Permissioned
Public blockchains are transparent. Banks need confidentiality, control, and permissioned access for most use cases.

4. Scalability
Public chains aren’t (yet) fast or private enough to handle global finance volumes—millions of txs per second.

Practical Considerations for Banks
The reasons you've outlined – legacy systems, regulatory clarity, confidentiality, and scalability – are compelling. Banks need to balance innovation with the need for stability, security, and compliance.

The Role of Blockchain
While blockchain technology has its advantages, it's clear that it still faces challenges in terms of regulatory clarity, scalability, and confidentiality. ISO 20022 seems to offer a more practical solution for banks looking to modernize their systems.

Future Developments
As blockchain technology continues to evolve, it's possible that we'll see more widespread adoption in the financial sector. However, for now, ISO 20022 appears to be a more feasible option for banks seeking to upgrade their infrastructure.