Blockchain for Cross-Border Payments: Feasibility Study for CBA

Abstract

This thesis Examines how blockchain could transform CBA’s cross-border payments by addressing speed, cost, transparency, and compliance issues. Legacy systems like SWIFT cause high fees ($25–$50), slow settlements (T+2–T+3 days), and poor transparency, resulting in inefficiencies, dissatisfied customers, and heavy compliance burdens.

The study uses a thorough methodology that includes a thorough assessment of CBA's present payment infrastructure, a case study analysis of international blockchain implementations (such as Santander's One Pay FX and JPMorgan's Quorum), and a systematic review of the literature. According to the research, blockchain-based systems that make use of smart contracts and distributed ledger technology can cut settlement times from days to minutes, cut transaction costs by as much as 60%, and produce real-time, unchangeable transaction records that improve auditability and transparency. By further automating compliance procedures, smart contracts reduce the need for human intervention and regulatory risk.

The thesis proposes a staged blockchain deployment for CBA, starting with Ripple-Net for AUD-USD, expanding to Ethereum Enterprise, and integrating with SWIFT via secure APIs. This hybrid approach reduces risks, ensures compliance, and targets sub-five-minute transactions under $10 with 98% audit pass rates. Addressing technical and legal challenges, it recommends AI-driven compliance, quantum-resistant cryptography, and regulatory collaboration, positioning CBA as a leader in modern cross-border payments.