Pakistan, one of the 10 main nations for abroad remittances, can take advantage of Blockchain technology to rationalize the process, Bin Saqib, main advisor to the Minister of Finance and a member of the recently established Pakistan Crypto Council (PCC) on Monday, said on Monday.
The Pakistani abroad sent more than $ 31 billion in 2023-24 through traditional channels that are often slow and expensive, Saqib told Coindesk in an interview. Rates can exceed 5%.
Remittances are profits that migrants send back home, either in cash or as goods. The foreigner’s cash is a lifeguard in many countries, where he acts as a shock absorber during crises and a potential promoter of sustainable growth.
“The PCC will investigate blockchain -based remittances to reduce costs and delays,” he said. “In addition, we will invest in Blockchain’s education, equilibrium programs and web3 development to cultivate talent, boost employment and boost economic growth.”
Blockchain technology could help improve fund transfers from abroad through unintermenting entities such as correspondent banks, significantly reducing the cost of cross -border transactions, the OECD observed in 2020.
The cryptocurrency and stable trade remains prohibited in Pakistan under a 2018 circular of the State Bank of Pakistan (SBP) that prohibits financial institutions from facilitating cryptographic transactions.
Even so, the country is one of the five Asian nations presented in the Global Cryptographic Adoption Index of Chainsis 2024. A significant percentage of the population is using digital assets to protect themselves against inflation and volatility in the exchange rate and the economy in general.
“This reflects a significant demand despite the regulatory vacuum. With more than 60% of the 240 million people under 30 years of Pakistan, our young technology experts are ready to boost blockchain and web3 innovation,” Saqib said. “The PCC is aimed at unlocking this without exploiting potential by advocating a clear and progressive regulatory frame.”
The PCC is also exploring initiatives such as the token of real world assets and the establishment of regulatory sandboxes while guaranteeing compliance with the standards of the Financial Action Task Group (FATF). Fatf eliminated Pakistan from the Gray list in 2022.
“Illegal encryption outputs are a concern,” said “without regulation, cryptocurrencies can facilitate cross -border transactions not hired, exacerbating the shortage of dollars.
Regulatory policies are beginning to evolve worldwide, even in Southeast Asia, following the support of President Donald Trump to the digital asset industry after winning the presidential elections of the United States.
Last week, Trump announced plans for a strategic Bitcoin reserve, which will be formed from BTC and other coins seized during compliance actions. Saqib was not sure if such movement adapted to Pakistan.
“While building a BTC reserve from seized assets could be attractive, the application of Pakistan cryptocurrencies is nascent, and illicit properties are rarely intercepted at scale. Any movement towards a strategic reserve would require careful dialogue with the IMF and Fatf to avoid endangering international support or the status of Gray-Gray list,” Saqib said.
