What does the end of legacy SWIFT code mean for cryptocurrency? Evidence from Ripple
Keywords:
Cryptocurrency, Event study, Abnormal return, Regulation, Market efficiency, Market reaction, ripple, price reaction, institutional, SWIFTAbstract
The public announcement to officially support ISO:20022 standard by Ripple, provides a unique setting to investigate the price effect following its announcement in the cryptocurrency market. This article is the first to explore the price reactions from the ISO standard adoption in cryptocurrency market context. Using an event-study methodology, the article shows the announcement of support for the ISO standard experienced a significant decrease in price a few days around the announcement, despite the nature of the announcement being good news. Such market anomalies are consistent with the stock price behaviors predicted by the concentrated-ownership theory commonly documented in stock market literature.
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