Transforming Global Remittance Systems Through Blockchain Technology: An Architectural Framework for Financial Inclusion and Efficiency
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The global remittance market, projected to exceed $300 trillion by 2025, remains dominated by legacy correspondent banking systems characterised by high fees, multi-day settlement delays, limited transparency, and systemic exclusion of low-income and unbanked populations. These structural inefficiencies perpetuate financial inequality and hinder global economic integration, particularly in developing nations where remittances constitute a significant share of household income. Existing digital payment alternatives, while faster, continue to rely on intermediary networks that replicate many of these same inefficiencies. This paper examines the transformative potential of blockchain technology in restructuring global remittance systems, with a focus on financial inclusion and operational efficiency. Drawing on a mixed-method empirical study encompassing 54 survey respondents and two fintech expert interviews, we demonstrate widespread user dissatisfaction with traditional payment systems and strong intent to adopt blockchain-based alternatives. We present a blockchain-based architectural framework that removes intermediaries, enables near-real-time cross-border settlement, and provides end-to-end transaction transparency through distributed ledger technology. The framework is grounded in the Technology Acceptance Model, Cross-Border Management Theory, and Dynamic Systems Theory. The findings indicate that blockchain-enabled remittance systems can substantially lower transaction costs, accelerate fund delivery, and extend financial services to underserved populations, contributing to the achievement of the UN Sustainable Development Goal of reducing remittance costs to 3% or below.
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