What is the Quantum Financial System?
The Quantum Financial System (QFS) is a theoretical financial system that is said to use quantum computing and blockchain technology to create a secure, transparent, and efficient financial system. According to proponents of the QFS, it is designed to replace the current financial system, which they claim is corrupt, opaque, and inefficient.
Advocates of the QFS claim that it is an entirely new financial system that is not based on the existing monetary system, but rather on a new digital currency called QFS dollars or Q-dollars. They claim that this currency is backed by gold and other precious metals, and that it is impossible to counterfeit or manipulate. They also claim that the QFS will eliminate the need for banks, financial intermediaries, and other third parties that currently facilitate financial transactions.
However, it’s important to note that the Quantum Financial System is a highly controversial and largely unproven concept. While there is some research being conducted into the use of quantum computing and blockchain technology in finance, it is still in its early stages and there is no guarantee that it will lead to the creation of a new financial system. Moreover, there is no evidence to support the claims made by proponents of the QFS, and many experts have expressed skepticism about its feasibility and viability.
SWIFT MT messages will be decommissioned for Cross-border payment?
Yes, it is true that SWIFT MT messages will be decommissioned for cross-border payments. SWIFT (Society for Worldwide Interbank Financial Telecommunication) has announced that it will be migrating its cross-border payment system to ISO 20022, a new global messaging standard for electronic data interchange between financial institutions.
The move to ISO 20022 is part of SWIFT’s strategy to modernize its messaging infrastructure and improve the efficiency and transparency of cross-border payments. The new standard will allow for richer and more structured data to be exchanged between financial institutions, which will enable faster and more accurate processing of payments.
As part of this migration, SWIFT will decommission the use of MT (Message Type) messages for cross-border payments by November 2025. Financial institutions will be required to use ISO 20022 messages for all cross-border payments by this date.
The migration to ISO 20022 is expected to bring significant benefits to the financial industry, including improved straight-through processing rates, reduced errors and exceptions, and enhanced compliance and regulatory reporting.
ISO 20022 is the Quantum Financial System?
No, ISO 20022 is not the Quantum Financial System (QFS). ISO 20022 is a global messaging standard for electronic data interchange between financial institutions. It defines a common language and data model for financial messages and enables the exchange of structured data between different financial systems.
ISO 20022 is designed to improve the efficiency, interoperability, and transparency of financial messaging and is being widely adopted by financial institutions around the world for a range of financial services, including payments, securities, and trade finance.
On the other hand, the Quantum Financial System (QFS) is a theoretical financial system that is said to use quantum computing and blockchain technology to create a secure, transparent, and efficient financial system. The QFS is not an established or widely adopted standard, and its existence and feasibility are still a matter of debate and speculation.
So, ISO 20022 and the Quantum Financial System are two different concepts, with the former being an established standard for financial messaging, while the latter is a hypothetical financial system that has not been proven to exist or be feasible.
What dollar value of SWIFT MT messages will move to ISO 20022 by November 2025?
It is difficult to provide an exact dollar value for the amount of SWIFT MT messages that will move to ISO 20022 by November 2025, as this will depend on various factors such as the volume and value of cross-border payments made using the SWIFT network.
However, it is estimated that SWIFT handles trillions of dollars in cross-border payments each day, and that a significant portion of these payments will need to transition to ISO 20022 messages by November 2025. SWIFT has stated that it expects over 4 billion messages to be sent using ISO 20022 each year once the migration is complete, which would represent a substantial portion of the overall value of cross-border payments made using SWIFT.
It’s worth noting that the migration to ISO 20022 is not just about transferring the value of SWIFT MT messages to a new format, but also about improving the efficiency, accuracy, and transparency of cross-border payments. By adopting ISO 20022, financial institutions will be able to exchange richer and more structured data, which will enable faster and more accurate processing of payments, reduce errors and exceptions, and improve compliance and regulatory reporting.
Is ISO 20022 Blockchain technology?
No, ISO 20022 is not a blockchain technology. It is a messaging standard that defines a common language and data model for financial messages exchanged between financial institutions.
ISO 20022 is designed to improve the interoperability, efficiency, and transparency of financial messaging, and it allows for richer and more structured data to be exchanged between different financial systems. This enables faster and more accurate processing of payments, reduces errors and exceptions, and enhances compliance and regulatory reporting.
While blockchain technology can also be used for financial messaging and has been applied in various financial use cases, it is a distinct technology from ISO 20022. Blockchain technology is a distributed ledger technology that enables secure, transparent, and immutable transactions and data storage without the need for a trusted intermediary.
So, ISO 20022 and blockchain technology are two separate technologies with different applications in the financial industry. However, they can be complementary, and some financial institutions are exploring the use of blockchain technology to enhance the efficiency and security of financial messaging and settlement.
QFS Image by Gerd Altmann from Pixabay
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