Is iEthereum ISO20022 Compliant?

One of the concerns I have had with iEthereum is whether it is going to be compliant with the new banking ISO20022 regulatory structure.

Institutional migration towards this new standard has already began and will continue through 2025 and beyond. This is not coincidence to the many wars we have been dealing with currently and within these past few years. Wars are won and lost and set outcomes are not guaranteed. The winners write the history (His Story) books.

This particular discussion is above my paygrade. What I do know is that we have access to these published compliance measures and what is intended to be the desired regulatory banking outcome.

Many cryptocurrencies such as Ripple (XRP), Proton (XPR), Stellar Lumens (XLM), Xin Fin (XDC), Hedera (Hbar), Quant (QNT), and Algorand (ALGO) are already compliant, or marketing as such, with the new ISO20022 standards. Just to name a few.

What about truly decentralized open source crypto projects such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ethereum Classic (ETC) Hex (HEX), Infinite (IFC) and in this particular case iEthereum (iEth)? Are they ISO2002 compliant?

I had the same questions. I decided to ask ChatGPT to get the answers for you and I.

Please note that iEthereum is an ERC20 token, thus the questions asked are in general terms for ERC20 tokens. This allowed us to get better answers that serve our inquisition regarding iEthereum.

IEAT: Are ERC20 tokens, ie iEthereum compliant with the ISO20022 requirements?

ChatGPT: ERC-20 tokens and ISO 20022 serve different purposes in the world of financial and blockchain standards, and they are not inherently compliant with each other. Let's break down what each of these standards entails:

These two standards address different aspects of the financial and blockchain world.

ERC-20 tokens and ISO 20022 are designed for different purposes and are not inherently compliant with each other. ISO 20022 is a standard for financial messaging and data exchange, while ERC-20 is a standard for creating fungible tokens on the Ethereum blockchain. These standards have different focuses and are not directly related to each other.

However, it is possible to integrate ERC-20 token transactions into financial systems that use ISO 20022 messaging standards. This integration would typically require the development of software or middleware to translate and facilitate communication between the Ethereum network, where ERC-20 tokens operate, and financial systems that use ISO 20022 messages.

For example, if you wanted to report or settle transactions involving ERC-20 tokens within a financial institution that uses ISO 20022 messaging, you might need to develop interfaces or software to bridge the gap and ensure the data is appropriately formatted for ISO 20022 compliance.

In summary, ERC-20 tokens and ISO 20022 are not directly compliant with each other, but it's possible to create interfaces and integration points that enable interoperability between ERC-20 tokens and financial systems that use ISO 20022 messaging standards.

IEAT: To be clear, what you are saying is that the responsibility of becoming ISO20022 compliant will not fall onto Ethereum or the ERC20 standard, yet will be responsible by the entities or organizations that implement or utilize Ethereum and/or ERC20 tokens

ChatGPT: Yes, you are correct. The responsibility for becoming ISO 20022 compliant typically falls on the entities or organizations that implement or utilize Ethereum and/or ERC-20 tokens within their systems. ISO 20022 compliance is a standard for financial messaging and data exchange, and it's the responsibility of the organizations integrating Ethereum or ERC-20 tokens into their financial systems to ensure that the data and transactions are appropriately formatted and compliant with ISO 20022 standards. Ethereum and the ERC-20 standard themselves are not designed with ISO 20022 compliance in mind, as they serve different purposes in the world of blockchain and cryptocurrencies.

IEAT: When is becoming ISO20022 compliant going to be a requirement for financial institutions to implement?

ChatGPT: The timeline for when ISO 20022 compliance will become a requirement for financial institutions to implement can vary by jurisdiction and depends on regulatory authorities, industry standards, and specific use cases. ISO 20022 adoption is an ongoing process, and different countries and regions may have different timelines and approaches.

Here are some key points to consider:

IEAT: In your opinion, is being ISO20022 compliant going to be the difference between successful ERC20 tokens and not successful ERC20 tokens moving into the future?

ChatGPT: While I can't provide opinions, I can offer some insights on the potential impact of ISO 20022 compliance on ERC-20 tokens and the broader cryptocurrency ecosystem.

ISO 20022 compliance is primarily related to financial messaging and data exchange standards, which are crucial for interoperability, data quality, and efficiency in traditional financial systems. ERC-20 tokens, on the other hand, are a standard for creating fungible tokens on the Ethereum blockchain. These two standards serve different purposes, but there can be interactions between them, particularly in cases where traditional financial institutions want to integrate with blockchain-based assets.

The success of an ERC-20 token will depend on various factors, including its use case, the underlying project, technology, adoption, regulatory compliance, and market demand. ISO 20022 compliance may be important for certain use cases where ERC-20 tokens are integrated into traditional financial systems. It can facilitate reporting, settlement, and other financial processes.

However, not all ERC-20 tokens will necessarily need ISO 20022 compliance. The relevance of compliance will depend on the specific applications and partnerships that tokens are involved in. For example, if a token is primarily used within the decentralized finance (DeFi) ecosystem, it may not have a direct need for ISO 20022 compliance.

In summary, ISO 20022 compliance may be a factor in the success of certain ERC-20 tokens, especially if they are integrated into traditional financial systems or if they serve use cases that require interoperability with those systems. However, the success of ERC-20 tokens will be determined by a combination of factors, and ISO 20022 compliance is just one potential aspect to consider.

iEther way, We see value!