SANJIVANI RURAL EDUCATION SOCIETY'S
SANJIVANI COLLEGE OF ENGINEERING
(AN AUTONOMOUS INSTITUTE)
CIA – II CASE STUDY
DEPARTMENT OF COMPUTER ENGINEERING
FY M TECH AY:- 2024-25
CO611B – BLOCKCHAIN TECHNOLOGY
Author :- Ritesh Ambadas
Waghchoure
Course Coordinator
PRN NO:- 0124PCSM1007
Dr. A.S.Bodhe
Title:- cross-border payments
Date: 26/04/2025
Blockchain Case Study: Cross-Border
Payments
This case study explores the transformative potential of blockchain technology in revolutionizing cross-border payments.
We delve into the challenges plaguing traditional international transactions, examining how blockchain offers a secure,
transparent, and cost-effective solution. Discover how this technology can reshape the future of global finance, particularly
for businesses operating in India. We will explore specific use cases and potential implementation strategies to help your
business harness the benefits of blockchain technology and improve your bottom line.
Introduction
Overview:
Blockchain is a decentralized ledger technology that
enables secure, transparent, and tamper-proof
transactions. In the context of finance, it offers a
transformative solution to cross-border payments by
eliminating intermediaries and enabling real-time
settlements.
Problem Statement:
Traditional cross-border payment systems are inefficient—
plagued by high fees, delayed settlements (up to several days),
lack of transparency, and risks related to currency conversion
and fraud.
Background
Industry Overview Current Challenges in traditional payment syst
The global remittance and •Settlement times of 2–5 days
international trade sectors handle •High transaction costs (up to 7–10%)
trillions of dollars annually. •Lack of transparency in tracking payments
Financial institutions, banks, and •High risk of errors and fraud due to multiple intermediaries
businesses rely heavily on legacy
systems like SWIFT, which were
not built for speed or cost-
efficiency.
Blockchain Solution
Solution Overview
A blockchain-based payment network that allows peer-to-peer international transfers without the need for central intermediaries.
A blockchain-based cross-border payment system that addresses inefficiencies in traditional Systems enabling
fast, low-cost, and secure international money transfers with full transparency and reduced counterparty risk.
Key Features
•Real-time settlement of funds
•Transparency and immutability of records
•Lower transaction costs (fraction of a cent)
•Enhanced security and reduced fraud risk
Use Case
Real-World Example:
RippleNet (Ripple Labs): Ripple’s blockchain network connects banks and payment providers, enabling fast
and low-cost cross-border payments. For example, Santander Bank uses Ripple for international transfers.
Benefits:
o Transactions settle in seconds
o Fees reduced by over 60%
o Improved customer experience with transaction traceability
A real world case study shows significant reduction in transaction fees for remittances using blockchain. Transparency ensures all
parties can track transactions in real-time, reducing disputes and enhancing trust. These benefits make blockchain an invaluable
asset for businesses operating in the global marketplace.
Technical Details
Blockchain Platform
1 Ripple (XRP Ledger), Stellar, or Ethereum for smart contracts integration.
Smart Contracts
2 Automate verification, compliance (KYC/AML), and settlement processes, reducing
manual intervention and processing time.
Ethereum (Layer 2 / Rollups)
3 Suitable for smart contract flexibility, though needs scaling solutions.
4 Hyperledger Fabric
For permissioned networks with regulated entities like banks
Choosing the right blockchain platform (e.g., Ripple, Stellar) is vital. Platforms that offer speed, scalability, and compatibility with
existing systems are ideal. Developing smart contracts automates payment processing, ensuring that transactions are executed
automatically. Data security and privacy are paramount, requiring compliance with Indian regulations.
Implementation
Challenges
Challenges
o Regulatory compliance across different countries
o Integration with legacy banking systems
o Volatility of crypto assets used in transactions
o Adoption resistance from traditional financial institutions
Solutions
o Use of stablecoins or CBDCs for volatility control
o Partnering with regulators and sandbox programs
o Providing APIs for seamless integration with banking infrastructure
Results and Outcomes
Results: Impact
o Cost reduction up to 80% for financial institutions o Financial inclusion in underbanked regions
o Transaction times reduced from 3 days to under 10 o Enhanced trust and efficiency in international trade
seconds o Competitive pressure on legacy systems to innovate
o Increased transaction transparency and traceability
Conclusion
Solution
Blockchain technology addresses key inefficiencies in cross-border
payments through decentralization, transparency, and automation. Its
implementation is already yielding measurable benefits for both
businesses and consumers.
Future Directions
o Expansion of CBDC-backed cross-border payment systems
o Integration with AI for fraud detection
o Global standardization and regulatory alignment for broader
adoption
Blockchain technology directly addresses the core pain points of traditional cross-border payment systems-high costs, slow
settlement times, and lack of transparency. By enabling instant, secure, and programmable transactions, blockchain
eliminates the need for multiple intermediaries and streamlines global money movement.
References
Ripple Labs (www.ripple.com)
World Bank Remittance Data
(www.worldbank.org)
Stellar Network (www.stellar.org)
BIS Reports on Cross-Border Payments
SWIFT vs Blockchain Comparison Reports
Industry whitepapers and case studies (e.g.,
Deloitte, IBM)
Thank you
