Pakistan, one of the top 10 recipients of global remittances, is actively considering blockchain technology to streamline and reduce costs for cross-border payments, according to Bilal bin Saqib, chief adviser to the finance minister and a key member of the recently established Pakistan Crypto Council (PCC).
Speaking in an interview with CoinDesk, Saqib highlighted that overseas Pakistanis sent more than $31 billion in remittances during the 2023-24 fiscal year through traditional banking channels—many of which are plagued by high fees, delays, and inefficiencies. Transaction costs can exceed 5%, significantly eating into the earnings of migrant workers supporting families back home.
Remittances: A Lifeline for Pakistan’s Economy
Remittances serve as a critical financial lifeline for many developing nations, including Pakistan. These inflows help stabilize household incomes, support local economies, and provide a buffer during financial crises. However, traditional remittance services often face long processing times and expensive fees, making it difficult for recipients to access funds quickly and affordably.
By adopting blockchain-based remittance solutions, Pakistan hopes to accelerate transaction speeds, minimize costs, and enhance transparency in money transfers.
The Pakistan Crypto Council (PCC) isn’t stopping at remittances. The council is also investing in blockchain education, upskilling programs, and Web3 development to cultivate local talent, create jobs, and drive economic growth.
“The PCC will investigate blockchain-based remittance solutions to reduce costs and delays,” Saqib stated.
“Additionally, we’ll invest in blockchain education, upskilling programs, and Web3 development to cultivate talent, boost employment, and drive economic growth.”
With Pakistan’s regulatory stance on cryptocurrencies gradually evolving, the initiative could position the country as a hub for blockchain innovation in South Asia.
Crypto Trading Remains Prohibited, But Adoption Grows
Despite Pakistan’s official ban on cryptocurrency trading, digital assets remain widely used among citizens, reflecting a growing reliance on crypto for financial security. The State Bank of Pakistan (SBP) first outlawed cryptocurrencies and stablecoins in 2018, barring financial institutions from facilitating transactions. Yet, Pakistan remains one of the five Asian countries ranked in Chainalysis’ 2024 Global Crypto Adoption Index, highlighting the strong underground demand for digital assets.
For many Pakistanis, crypto has become a hedge against inflation, foreign exchange volatility, and economic uncertainty. With the Pakistani rupee experiencing frequent depreciation, citizens have turned to Bitcoin (BTC), Tether (USDT), and other stablecoins to store value and conduct cross-border transactions outside the traditional banking system.
Visa’s Initiative to Boost Digital Payments in Pakistan
In a related development, Visa has announced plans to increase the number of businesses in Pakistan accepting digital payments tenfold over the next three years. This initiative, in partnership with 1Link, aims to streamline remittances and promote digital transactions, especially in a country where 60% of the adult population is banked. The strategy includes expanding digital payment infrastructure and making transactions more accessible by transforming phones into payment instruments and supporting various payment methods.
Pakistan Crypto Council Pushes for Regulatory Framework
As the government grapples with crypto adoption outside its financial system, the Pakistan Crypto Council (PCC) is advocating for a regulatory framework that could bring digital assets under legal oversight. The council is also exploring the tokenization of real-world assets and the establishment of regulatory sandboxes, ensuring that Pakistan’s policies align with the Financial Action Task Force (FATF) compliance standards.
Pakistan was previously on the FATF’s gray list, limiting its global financial engagement, but was removed in 2022. To prevent unregulated crypto outflows and capital flight, the PCC is emphasizing strict KYC (Know Your Customer) and AML (Anti-Money Laundering) measures as part of any future legal framework for digital assets.
Quick Facts:
- The Pakistan Crypto Council (PCC) is exploring blockchain-based solutions to lower remittance costs and improve transaction speed.
- Pakistan received over $31 billion in remittances in the 2023-24 fiscal year, ranking among the top 10 global recipients.
- Traditional remittance channels charge fees exceeding 5%, making cross-border transactions costly and inefficient.
- Despite a 2018 ban on cryptocurrency trading, Pakistan remains one of the top five Asian nations in Chainalysis’ 2024 Global Crypto Adoption Index.
