Pakistan could potentially save around $400 million every year by using regulated stablecoins for remittances, according to Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA).
Saqib said the potential savings could be achieved if stablecoin-based transfers reduce remittance transaction costs by just one percentage point. Pakistan receives roughly $40 billion in annual remittance inflows, making even a small reduction in transfer costs financially significant.
The proposal is part of Pakistan’s wider effort to bring virtual assets into the formal financial system and develop regulated digital-asset use cases. Authorities are examining how blockchain-based technologies could support cross-border payments, digital exports, trade finance and tokenized financial assets.
According to Saqib, around $40 billion in remittances continues to enter Pakistan through traditional financial channels, including the SWIFT system. The country therefore has significant potential to explore alternative payment technologies that can make international transfers faster and more affordable.
The cost of sending remittances remains an important issue for migrant workers and their families. Saqib cited World Bank data showing that the global average cost of sending $200 is around 6 percent, highlighting the potential room for more efficient payment mechanisms.
Stablecoins are digital assets designed to maintain a relatively stable value, often by being linked to traditional currencies or other assets. Unlike highly volatile cryptocurrencies, stablecoins are generally intended to facilitate payments and transfers rather than function primarily as speculative investments.
For Pakistan, regulated stablecoins could offer a possible avenue for improving the efficiency of remittance transfers while maintaining oversight through the formal financial system. However, their wider adoption would depend on appropriate regulations, compliance requirements and safeguards.
The government’s interest in stablecoin-based remittances also reflects the growing importance of digital finance in Pakistan. If properly regulated, blockchain technology could potentially support not only overseas transfers but also other areas of the economy.
Saqib said Pakistan is exploring broader applications for virtual assets, including cross-border payments and digital exports. Tokenization of financial assets and the use of digital technologies in trade finance are also being considered as part of the country’s emerging virtual-assets framework.
The potential $400 million saving is based on a simple one-percentage-point reduction in transaction costs applied to approximately $40 billion in annual remittance inflows. Actual savings would depend on adoption levels, transaction costs, regulatory requirements and the efficiency of the payment infrastructure.
Remittances are a major source of foreign exchange for Pakistan and play an important role in supporting households across the country. Lower transfer costs could allow families to receive a larger share of the money sent by Pakistanis working abroad.
The development signals that Pakistan is increasingly examining digital assets beyond cryptocurrency trading. By focusing on regulated applications such as remittances and cross-border payments, authorities are looking at ways virtual-asset technology could contribute to the formal economy.
