A recent memorandum of understanding has attracted attention. The Ministry of Finance of Pakistan has reached an agreement with a US-registered fintech company, SC Financial, with the goal of simplifying cross-border payment processes and increasing foreign exchange reserves through blockchain technology.

According to the agreement, SC Financial will collaborate with the State Bank of Pakistan to promote the integration of a dollar-pegged stablecoin, enabling it to be incorporated into Pakistan’s regulated payment system while operating alongside the country’s future digital currency framework. This is not merely a technical experiment but targets a real economic pain point.

The data clearly illustrates the issue: Pakistan’s annual overseas remittances exceed $36 billion, primarily from overseas workers. Traditional cross-border remittances, while convenient, have obvious shortcomings—high time costs, numerous intermediary fees, and significant exchange rate fluctuation risks. Using stablecoins as bridging assets could theoretically significantly reduce settlement cycles and cut transaction costs, ultimately ensuring more real money reaches the recipients.

From Pakistan’s perspective, this also represents a new approach to foreign exchange management. Against the backdrop of accelerating global central bank digital currency and stablecoin applications, proactively embracing blockchain payment infrastructure can improve foreign exchange supply and enhance international competitiveness.