Pakistan, recognized as one of the largest recipients of remittances, is exploring the use of blockchain to streamline cash transfers. Bilal bin Saqib, chief adviser for the Finance Minister, highlighted that the exploration is part of the initiatives taken by the recently formed Pakistan Crypto Council (PCC).

What to know:

• Pakistan has seen over $31 billion in remittances from abroad in 2023-24. The current traditional systems for these transfers often come with high fees that can exceed 5%.
• Saqib mentioned that the PCC will investigate blockchain solutions that can help in reducing costs and delays in remittance processes.

“The PCC will look into blockchain-based solutions for remittances to make them more efficient,” Saqib stated. Additionally, he mentioned efforts to educate the workforce in blockchain technology to stimulate economic development in Pakistan.

The focus on blockchain could potentially enhance the remittance process by eliminating unnecessary intermediaries, significantly impacting the costs of international transactions.

However, according to Pakistani regulations, trading in cryptocurrencies remains prohibited. Despite this, there is a notable interest in digital assets among the youth, which the PCC hopes to channel towards innovative endeavors in the blockchain sector.

Bilal bin Saqib emphasized: “Our youth, who make up a significant percentage of the population, are keen on technology. With the push for a clear regulatory framework, we aim to unlock this potential.”