Pakistan Eyes Blockchain for Cheaper, Faster Remittances Amid Crypto Boom

Pakistan Eyes Blockchain for Cheaper, Faster Remittances Amid Crypto Boom

Pakistan, one of the top 10 nations receiving remittances, is exploring blockchain to streamline cross-border transfers, according to Bilal bin Saqib, chief adviser to the finance minister and a member of the Pakistan Crypto Council (PCC). In 2023-24, overseas Pakistanis sent over $31 billion through costly and slow traditional channels, with fees exceeding 5%.

Saqib told CoinDesk that the PCC is investigating blockchain-based remittance solutions to cut costs and delays. The council also aims to boost blockchain education, upskill the workforce, and foster Web3 development to drive economic growth.

Despite Pakistan’s 2018 ban on cryptocurrency transactions, the country ranks in Chainalysis' 2024 Global Crypto Adoption Index. Many Pakistanis turn to digital assets to hedge against inflation and currency volatility. With over 60% of its 240 million population under 30, Pakistan has a young, tech-savvy workforce poised for blockchain innovation.

The PCC is also looking into tokenizing real-world assets, establishing regulatory sandboxes, and ensuring compliance with Financial Action Task Force (FATF) standards. While the FATF removed Pakistan from its gray list in 2022, unregulated crypto outflows remain a concern. Saqib emphasized the need for a transparent regulatory framework enforcing KYC and AML protocols to prevent illicit financial flows.

Meanwhile, global crypto policies are shifting, particularly after Donald Trump’s recent support for digital assets. He announced plans for a strategic Bitcoin reserve funded by seized crypto assets. However, Saqib noted that Pakistan’s enforcement is still in its early stages, and any similar initiative would require careful discussions with the IMF and FATF to avoid economic risks.