Pakistan Cryptocurrency Council exploring use of blockchain for multi-billion dollar overseas remittances, adviser claims
Pakistan to explore blockchain for multi-billion dollar overseas remittances: adviser
Blockchain technology could help increase the speed and reduce the cost of remittances from migrant workers, Bilal bin Saqib said in an interview.
Posted by: Omkar Godbole | Edited by: Sheldon Reback Updated: March 10, 2025 13:00 UTC Published: March 10, 2025 12:23 UTC
Important points:
- Pakistan, one of the largest recipients of remittances from its citizens abroad, is exploring blockchain technology to simplify the process, according to Bilal bin Saqib, chief adviser to the finance minister at the newly formed Pakistan Cryptocurrency Council (PCC).
- Saqib noted that the PCC advocates for a clear regulatory framework for blockchain and Web3 innovations, and is also considering initiatives such as the tokenization of real-world assets in line with the Financial Action Task Force (FATF) standards.
Pakistan, which is among the top 10 countries with the highest volume of foreign remittances, can use blockchain technology to streamline the process, Bilal bin Saqib, chief adviser to the finance minister and a member of the newly established Pakistan Cryptocurrency Council (PCC), said on Monday.
Overseas Pakistanis sent more than $31 billion through traditional channels in 2023-24, which are often slow and expensive, Saqib told CoinDesk. Fees can reach more than 5%.
Remittances are the income that migrants send home, both in cash and in goods. Cash from abroad serves as a lifeline in many countries, where it acts as a buffer during times of crisis and a potential boost to sustainable growth.
“PCC will explore blockchain-based solutions for remittances to reduce costs and waiting times,” he said. “In addition, we will invest in blockchain education, skill development programs and Web3 development to develop talent, increase employment and stimulate economic growth.”
According to 2020 OECD data, blockchain technology could help improve cross-border money transfers by eliminating intermediaries such as correspondent banks, which could significantly reduce the costs of transactions between countries.
Trading in cryptocurrencies and stablecoins remains banned in Pakistan under the State Bank of Pakistan (SBP) circular of 2018, which prohibits financial institutions from conducting cryptocurrency transactions.
However, the country is among five Asian countries featured in Chainalysis' 2024 Global Cryptocurrency Adoption Index. A significant portion of the population uses digital assets to hedge against inflation and fluctuations in the exchange rate and the economy as a whole.
“This indicates significant demand despite the lack of regulation. With over 60% of Pakistan’s 240 million people under 30, our tech-savvy youth are poised to drive innovation in blockchain and Web3,” Saqib said. “PCC aims to unlock this untapped potential by advocating for a clear and progressive regulatory framework.”
The PCC is also considering initiatives such as tokenization of real assets and the creation of regulatory sandboxes, while ensuring compliance with Financial Action Task Force (FATF) standards. In 2022
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