Definition ∞ ISO 20022 alignment signifies adherence to an international standard for electronic data interchange among financial institutions. This standard establishes a common language and methodology for financial messages, thereby promoting interoperability and efficiency in global payments and reporting. It aims to standardize communication across the financial sector.
Context ∞ The increasing importance of ISO 20022 alignment is evident in efforts to modernize payment infrastructures worldwide, including its relevance for central bank digital currencies and blockchain-based payment systems. This standardization ensures seamless integration with existing financial networks, facilitating smoother global transactions. Achieving alignment is a strategic objective for many financial innovators.