The Application Of Blockchain In Cross-Broder Payment And Settlement Of Banks

Nowadays,the development of cross-border payments significantly lags behind that of domestic payments,and the traditional cross-border payment model represented by SWIFT still faces common problems such as long processing time,high cost and low transparency.In2019,under the initiative of G20,the international financial community has launched a comprehensive study on improving cross-border payment services,exploring how to apply the latest financial technology solutions to cross-border payments.Meanwhile,the success of cryptographic digital currencies based on blockchain technology has drawn the attention of the financial industry.Blockchain technology is decentralized and irreversible,and the introduction of blockchain technology is expected to help decentralize the traditional cross-border payment system,thereby building a faster,safer and more transparent cross-border payment model.However,there are still practical problems such as insufficient practice,unsystematic theory and imperfect policies at the level of international payment in China,which seriously hinder blockchain from making its due role in China’s cross-border payment scenario.Considering the above,this thesis discusses the application mode of blockchain in the cross-border payment and settlement business of HSBC from the perspective of the outstanding problems faced at present,in order to provide reference for the application of blockchain in the cross-border payment and settlement business of Chinese banks.The study of this thesis has the following practical significance: 1.This thesis objectively discusses the business innovation of international banks in combination with blockchain from the practical application level,which is of great significance to benefit ordinary consumer users with the achievements of technological innovation;2.The typicality and demonstration effect of the blockchain case studied in this thesis can,to a certain extent,form a reference for domestic banks to apply blockchain technology;3.The study of HSBC’s blockchain-based cross-border payment settlement model can bring reference value to the relevant regulatory authorities in the formulation of policies.This thesis studies the cross-border payment settlement of banks under blockchain.Firstly,the basic principles and characteristics of blockchain operation are analyzed from the perspective of underlying architecture,and then the main application modes of current blockchain technology in cross-border payment settlement business are explored to discover the advantages and disadvantages of various application modes.Secondly,taking HSBC as an example,we discuss how blockchain is applied to the field of cross-border payment and settlement of banks and the business process of cross-border payment and settlement based on blockchain.Finally,analyzing the application effect and mechanism of blockchain in cross-border payment and settlement business,and put forward corresponding conclusions and revelations on the development of blockchain cross-border payment in China.Although blockchain has been widely used,it is not yet mature and there are still technical problems,this thesis discusses the value and application of blockchain in depth from the perspective of practical application,and illustrates the advantages and feasibility of blockchain combined with cross-border transactions from the technical characteristics of blockchain.The innovation of this thesis lies in the fact that most of the existing domestic studies focus on the technical principle of blockchain and the comparison with the correspondent bank model,but there are few studies that analyze the mode and process of cross-border payment and settlement based on blockchain from the perspective of actual business.There is also little literature on the effect of blockchain application and operation mechanism in detail,combining the case of international banks’ blockchain cross-border payment settlement model.