Smart Contracts, Smarter Payments: Innovating Cross Border Payments and Reporting Transactions

TL;DR

This paper introduces a novel blockchain-based framework utilizing smart contracts and ISO20022 standards to improve security, transparency, and efficiency in cross-border payments, addressing current limitations in traditional systems.

Contribution

It presents a new prototype framework for implementing smart contracts and translating ISO20022 messages to facilitate compliant, secure, and efficient cross-border transactions.

Findings

Prototype framework successfully emulates cross-border payments

Mechanism for translating ISO20022 messages demonstrated

Framework enhances security and transparency in transactions

Abstract

The global financial landscape is experiencing significant transformation driven by technological advancements and evolving market dynamics. Moreover, blockchain technology has become a pivotal platform with widespread applications, especially in finance. Cross-border payments have emerged as a key area of interest, with blockchain offering inherent benefits such as enhanced security, transparency, and efficiency compared to traditional banking systems. This paper presents a novel framework leveraging blockchain technology and smart contracts to emulate cross-border payments, ensuring interoperability and compliance with international standards such as ISO20022. Key contributions of this paper include a novel prototype framework for implementing smart contracts and web clients for streamlined transactions and a mechanism to translate ISO20022 standard messages. Our framework can provide a practical solution for secure, efficient, and transparent cross-border transactions, contributing to the ongoing evolution of global finance and the emerging landscape of decentralized finance.