Cross-Border Remittance System with Smart Contract Automation

Abstract

Cross-border remittances are important sources of financial support for families, especially in developing countries, facilitating access to basic human necessities like education and healthcare. In spite of their stability through international crises like COVID-19, and India being the largest recipient in 2024, conventional remittance systems based on SWIFT and Correspondent Banking persist with high costs, lagged processing times, and low transparency. This paper suggests a blockchain-based remittance platform that overcomes these limitations by removing intermediaries, facilitating real-time peer-to-peer transfer through automation of smart contracts. The platform makes use of stablecoins to provide volatility resistance. Secure custodial wallets, as well as strict KYC/AML compliance, provide user authentication and regulatory compliance. The designed architecture improves speed, lowers the cost of transactions, and provides regulatory trust—showing a scalable, secure, and inclusive alternative to traditional remittance systems.