Pakistan is exploring regulated stablecoins as a potential way to reduce the cost of sending remittances into the country, with annual savings estimated at around $400 million if transaction costs decline by one percentage point. Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib said the country receives roughly $40 billion in annual remittances, much of which continues to move through traditional international payment channels.
The proposed use of stablecoins forms part of a broader government effort to identify practical applications for virtual assets beyond cryptocurrency trading. Officials are examining blockchain-based solutions for cross-border payments, digital exports, trade finance and tokenised financial assets, with the objective of using digital infrastructure to reduce costs and improve the movement of funds through the formal economy.
Remittances remain a major source of foreign exchange for Pakistan, making transaction costs an important consideration for overseas Pakistanis and recipients. Saqib pointed to global remittance costs and argued that even a relatively small reduction in fees could translate into substantial savings when applied to Pakistan’s large annual inflows. The proposed stablecoin model would seek to use blockchain-based payment rails to make certain cross-border transfers faster and more cost-efficient.
The initiative comes as Pakistan moves to establish a formal regulatory framework for virtual assets. The country has opened the licensing process for Virtual Asset Service Providers (VASPs), while existing providers are required to apply for a No-Objection Certificate by September 5, 2026, under the Virtual Assets Act 2026.
Beyond remittances, PVARA is also examining how blockchain infrastructure could support Pakistan’s growing digital workforce, including freelancers, software developers and other professionals receiving international payments. Tokenization is additionally being considered for areas such as SME financing, trade receivables, agriculture, energy and infrastructure, indicating that the government’s virtual-asset strategy is increasingly focused on broader financial and economic applications.
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