Pakistan, one of the 10 best nations for the sending of funds from abroad, can take advantage of Blockchain technology to rationalize the process, Bilal Bin Saqib, chief advisor to the Minister of Finance and member of Pakistan Crypto Council (PCC) recently established (PCC).
Pakistanis abroad sent more than $ 31 billion in 2023-24 via traditional channels that are often slow and expensive, SAQIB told Coindesk in an interview. The costs can exceed 5%.
Shipments of funds are income that migrants refer to them, either in cash or in goods. Foreign money is a rescue buoy in many countries, where it acts as a stamp during crises and a potential sustainable growth engine.
“The CCP is investigating the blockchain-based fund solutions to reduce costs and delays,” he said. “In addition, we will invest in the education of blockchain, update programs and the development of web3 to cultivate talents, stimulate employment and stimulate economic growth.”
Blockchain technology could help improve fund transfers from abroad by disinteresting entities such as corresponding banks, considerably reducing the cost of cross -border transactions, the OECD observed in 2020.
The exchanges of cryptocurrencies and stablescoins remain prohibited in Pakistan as part of a 2018 circular from the State Bank of Pakistan (SBP) prohibiting financial institutions from facilitating cryptographic transactions.
However, the country is one of the five Asian nations presented in the global adoption of the cryptography of the chain chain. A significant percentage of the population uses digital assets to hide against inflation and volatility of the exchange rate and the wider economy.
“This reflects a significant demand despite the regulatory vacuum. With more than 60% of the 240 million people in Pakistan under 30, our technology who is ready to stimulate blockchain and web3 innovation,” said SAQIB. “The CCP aims to unlock this unexploited potential by pleading for a clear and progressive regulatory framework.”
The PCC also explores initiatives such as the tokenization of real assets and the establishment of regulatory sand bins while guaranteeing compliance with the standards of the Financial Action Working Group (FATF). The FATF removed Pakistan from the gray list in 2022.
“The outings of illegal crypto is a concern,” he said “without regulation, cryptocurrencies can facilitate unlocked cross-border transactions, exacerbating shortages in dollars. The first stage of the CPC is to establish a robust transparent regulatory framework in terms of demanding framework for all crypto activities.” KYC).
Regulatory policies are starting to evolve on a global scale, including in Southeast Asia, following the support of President Donald Trump to the digital asset industry after winning the American presidential election.
Last week, Trump announced plans for a Bitcoin strategic reserve, which will be formed from the BTC and other parts entered during application measures. Saqib was not sure if such a movement suited Pakistan.
“Although the construction of a BTC reserve of the entered assets can be attractive, the application of the cryptography of Pakistan is emerging, and illicit assets are rarely intercepted on a large scale. Any evolution towards a strategic reserve would require a meticulous dialogue with the IMF and the GADS to avoid endangering the international support or the status of the postal list of Pakistan,” said SAQIB.
