Pakistan Crypto Council to explore the blockchain for multibillion dollar remittances from overseas, says advisor
Pakistan, one of the top 10 countries for remittances from abroad, can use blockchain technology to –streamline the process, Bilal Bin Saqib, Chief Adviser to the Minister of Finance and a member of the recently established Pakistan Crypto Council (PCC), Monday said.
Overseas Pakistanis sent more than $ 31 billion to 2023-24 through traditional channels that are often slow and expensive, Saqib told CoinDesk in an interview. Fees can exceed 5%.
Remittances are income that migrants send, either as cash or as goods. Cash from overseas is a lifeline in many countries, where it acting as a buffer During crises and a potential driver of sustainable growth.
“The PCC will review blockchain -based remittance solutions to reduce costs and delays,” he said. “In addition, we invest in Blockchain education, web3 programs, and web3 development to cultivate talent, boost work, and encourage economic growth.”
Blockchain technology can help improve funds from overseas through distracting creatures such as corresponding banks, who potentially reduce the cost of cross-border transactions significantly, the OECD to observe in 2020.
Trading in cryptocurrencies and stablecoins remains prohibited in Pakistan under a 2018 circular from the State Bank of Pakistan (SBP) which prohibits financial institutions from facilitating crypto transactions.
However, the country is one of the five Asian countries featured in the chainalysis’ 2024 Global Crypto Adoption Index. A significant percentage of the population is the use of digital assets to guard against inflation and volatility at the foreign exchange rate and the wider economy.
“It reflects significant needs despite the regulation vacuum. In more than 60% of Pakistan’s 240 million people under 30, our tech-savvy youth have prepared to drive blockchain and web3 innovation,” Saqib said. “The PCC aims to unlock this potential by promoting for a clear, progressive regulatory framework.”
The PCC also explores initiatives such as tokening real-world assets and establishing sandboxes while ensuring compliance with the Financial Action Task Force (FATF) standards. FATF removed Pakistan from the gray list in 2022.
“The illegal flow of crypto is a concern,” he said “without regulation, cryptocurrencies can facilitate unspecified cross-border transactions, reminding dollar deficiencies. The first step of the PCC is to establish a stable, transparent regulation that is regulating all the commands (KYC) laundering (AML) compliance with all crypto activities.
Regulatory policies are beginning to change worldwide, including Southeast Asia, supporting President Donald Trump’s support for the digital assets industry after winning the US presidential election.
Last week, Trump announced plans for a strategic bitcoin reserve, which would develop from BTC and other coins that were seized during implementation actions. Saqib was not sure if such a step would fit Pakistan.
“While the construction of a BTC reserve from the seized assets can be attractive, Pakistan’s crypto implementation is nascent, and the forbidden handling will rarely interfere with size. Any move to a strategic reserve will require careful conversation with the IMF and FATF to prevent harmful support in international or post-gray-list-list status,” said international or post-list-list-list status of Pakistan, Saqib.
