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Pakistani workers in Gulf turn to stablecoins for remittances amid Iran war concerns: report

Pakistani workers in Gulf turn to stablecoins for remittances amid Iran war concerns: report

Migrant workers from South Asia employed in Gulf countries are increasingly turning to stablecoins as an alternative channel for sending money home amid concerns that the US-Iran conflict could disrupt traditional remittance systems linked to the dollar, according to a report by SCMP.

Industry analysts said fears surrounding sanctions, financial restrictions and disruptions in the Strait of Hormuz have pushed some workers toward digital tokens such as USDT and USDC for cross-border transfers.

Millions of workers from Pakistan, India, Bangladesh and Sri Lanka rely on Gulf economies for employment, while remittances remain a major source of foreign exchange for several South Asian countries.

According to the State Bank of Pakistan, workers’ remittances stood at $3.54 billion in April 2026, showing an 11% increase compared to the same month last year, although inflows declined 8% on a monthly basis from March. During the first 10 months of FY26, total remittances reached $33.86 billion, up 8.5% year-on-year.

Analysts, however, pointed to growing dependence on Gulf economies for remittance inflows. Data showed that Saudi Arabia, the UAE and other Gulf Cooperation Council countries collectively accounted for more than $18 billion during 10MFY26, representing more than half of Pakistan’s total remittance receipts.

Saudi Arabia remained the largest source with inflows of $7.93 billion, followed by the UAE at $7 billion.

Experts warned that the concentration of remittances from a single region leaves Pakistan vulnerable to external disruptions, particularly as geopolitical tensions in the Gulf continue to rise amid fears of wider regional conflict.

According to the Global Settlement Network, remittances account for between 3% and 5% of GDP in multiple emerging economies, while the share reaches around 10% in Nepal.

Singapore-based blockchain adviser Anndy Lian said there had been a gradual shift among South Asian migrant workers toward stablecoins following the Iran conflict, although traditional banking and licensed exchange operators still dominate remittance flows.

Lian estimated that stablecoins currently account for around 3% to 4% of remittances sent by Gulf-based workers.

He said one reason for the growing interest in USDT was that it often trades at a premium of around 4% to 5% in markets such as India compared to official dollar exchange rates, allowing recipients to obtain higher value on transfers.

The report said concerns over remittance channels intensified after the United States warned against toll payments to Iran for ship passage through the Strait of Hormuz, which has faced disruptions during the conflict.

According to Raj Kapoor, president of the India Blockchain Alliance, the conflict has also affected treasury operations and financial activities of global banks operating in the Gulf region, creating additional pressure on conventional remittance systems.

Several Gulf states, including the UAE, Bahrain and Saudi Arabia, have introduced regulatory frameworks in recent years allowing stablecoins to operate within parts of their financial systems.

Ryan Kirkley, co-founder and co-chief executive officer of Global Settlement Network, said the conflict had affected not only energy markets and dollar liquidity but also remittance flows relied upon by millions of migrant workers and their families.

India received around $125 billion in remittances last year, with Gulf countries contributing roughly one-third of the total, according to the report.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Iran war pushes Asia’s Gulf migrants to use stablecoins for remittances

Iran war pushes Asia’s Gulf migrants to use stablecoins for remittances
Asian migrant workers in the Gulf are testing stablecoins as a backup channel for sending money home, as the Iran war heightens fears that the risk of US sanctions could disrupt remittances that millions of families and several Asian economies rely on.

Remittances from these workers account for 3 per cent to 5 per cent of gross domestic product in several emerging markets – in Nepal, it is as high as 10 per cent, according to data from the Global Settlement Network.

Concerns over remittance flows have escalated after the US warned against toll payments to Iran for ship passage through the Strait of Hormuz, which has largely been blocked amid the ongoing conflict between the two countries.

“There has been a quiet but noticeable informal pivot among South Asian migrant workers, including a significant number from India, towards digital tokens such as stablecoins in the period following the Iran conflict,” said Anndy Lian, a Singapore-based adviser to governments on blockchain and information technology.

“Rather than routing everything through traditional dollar-linked banking channels, a slice of remittances is now moving via instruments like USDT,” he said, referring to the Tether stablecoin backed by the US dollar.

A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset, which could be a fiat currency or other assets, such as gold.

Stablecoins currently account for about 3 to 4 per cent of overall remittances of Gulf-based workers, according to Lian, suggesting that these workers still mostly prefer to transfer money through banks and licensed operators.

Millions of people from India, Sri Lanka, Pakistan, Bangladesh and other countries have worked in the oil-rich Middle East for years. However, their job uncertainties have increased in recent months as the Iran war entangled other Gulf states.

Lian said a key attraction of the widely used USDT was that it commanded a higher value by about 4 to 5 per cent in markets such as India, compared with the official exchange rate for the US dollar, allowing recipients to get more value.

The prospect of sanctions related to the Iran war has raised fears about disruptions to the dollar-based monetary transfers through traditional modes, although there is no sign that Washington is planning to block legitimate remittances, according to Lian.

Several Gulf countries, such as the UAE, Bahrain and Saudi Arabia, have introduced regulations in recent years to allow stablecoins in their financial systems.

Workers in the Middle East are increasingly turning to stablecoins for remittances, given that such transfers are faster than traditional banking systems, according to Lian.

“The shift is real, but incremental, and is concentrated among the more tech-comfortable, urban-linked segment of the diaspora rather than the broader labour corridors,” he said.

Raj Kapoor, president of the India Blockchain Alliance, said global banks had tightened their Gulf operations due to the Iran war, which had affected their treasury and other functions that underpinned remittance flows.

Stablecoins, particularly the USDT and USDC, have filled the gap for financial settlements in the region, according to Kapoor.

“The Iran war has functioned less as a cause and more as a powerful accelerant of a shift that was already structurally under way,” he added.

Ryan Kirkley, co-founder and co-CEO of Global Settlement Network, said the Iran war had caused disruption not only to energy supplies and dollar liquidity but also remittances.

Countries across South Asia and Southeast Asia are reliant on these monetary transfers, with India alone having received US$125 billion in remittances last year and Gulf nations contributing to a third of the figure, according to Kirkley.

Given their significance, compliance standards for stablecoins and tokenised payments should be enhanced and for migrant workers to have this option to send their money home amid the Iran war, Kirkley said.

“If a Gulf bank pulls back on dollar clearing or a UAE exchange house tightens onboarding because of secondary-sanctions exposure, the first thing to feel it is not the oil tanker, it is the construction worker in [the city of] Sharjah trying to send 2,000 UAE dirhams [US$545] home,” he said.

 

Source: https://www.scmp.com/week-asia/economics/article/3353456/iran-war-pushes-asias-gulf-migrants-use-stablecoins-remittances

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

While you were sleeping: Iran closed a critical oil route and crypto exploits

While you were sleeping: Iran closed a critical oil route and crypto exploits

Over the past 24 hours, the total crypto market capitalisation has contracted by 1.74 per cent to settle at US$2.51T, a decline that reveals deeper structural concerns within the digital asset ecosystem. This selloff arrives at a particularly ironic moment, given that traditional equity markets closed at record highs just days prior on April 17, with the S&P 500 reaching 7,126.06, the Nasdaq Composite climbing to 24,468.48, and the Dow Jones Industrial Average touching 49,447.43. The stark divergence between these two worlds tells a story of a crypto market still struggling to mature beyond its inherent vulnerabilities.

The primary catalyst for this latest downturn stems from a devastating US$292M exploit targeting Kelp DAO’s rsETH bridge on April 19. This incident did not occur in isolation; it triggered immediate systemic risk across the decentralised finance landscape. Major protocols, including Aave and Treehouse, found themselves scrambling to review their exposures, sparking a wave of panic withdrawals that rippled through Ethereum-based DeFi platforms.

The impact on Ethereum itself proved severe, with the asset declining 3.18 per cent as investors fled leveraged positions and liquidity evaporated from key trading pairs. This episode underscores a persistent and uncomfortable truth about the crypto ecosystem. Smart-contract vulnerabilities remain a critical weakness that can undermine market confidence in a matter of hours.

What makes this situation particularly concerning is the timing. The exploit coincided with escalating geopolitical tensions as Iran moved to close the Strait of Hormuz, one of the world’s most critical oil transit routes. This development sent shockwaves through global markets, with Brent crude oil surging approximately six to seven per cent to exceed US$95 per barrel. The reintroduction of such significant risk premiums has forced traders to reassess their exposure to speculative assets across the board.

Crypto markets, despite their narrative of decentralisation and independence from traditional finance, have demonstrated remarkable sensitivity to these macro shocks. The 7-day correlation between crypto and Gold has reached 81 per cent, indicating that during periods of uncertainty, digital assets increasingly move in tandem with traditional safe-haven instruments rather than maintaining their promised role as an uncorrelated alternative investment.

The International Monetary Fund recently cut its 2026 global growth forecast to 3.1 per cent, warning that continued energy supply disruptions could push the economy toward a more adverse 2.5 per cent scenario. This backdrop of economic uncertainty heightens pressure on risk assets, and crypto is particularly exposed given its relatively short track record of navigating genuine geopolitical crises. The market now faces a critical test as it attempts to determine whether the rsETH exploit represents an isolated incident or the beginning of a broader contagion that could cascade through interconnected DeFi protocols.

The market has established US$2.44T as a crucial Fibonacci support level that must hold to prevent further deterioration. Should the market consolidate between this US$2.44T floor and the US$2.53T resistance level, it would suggest that the worst of the selling pressure has been absorbed. A sustained break below US$2.44T would open the door to testing the US$2.35T level, which would represent a much more severe correction.

Bitcoin’s dominance currently sits at 59.3 per cent, and this metric will prove essential in determining whether the market can stabilise. If Bitcoin maintains its defensive anchor role while altcoins continue to weaken, it would indicate a flight to quality within the crypto ecosystem itself. Conversely, if Bitcoin’s dominance begins to erode, it would signal broader market distress.

The path forward depends on several critical factors that will unfold over the coming days.

  • First, the crypto community needs clarity on the total losses stemming from the Kelp DAO exploit and assurance that no additional vulnerabilities exist in related protocols.
  • Second, markets require some resolution or de-escalation of the Strait of Hormuz situation, as continued geopolitical tension will keep risk premiums elevated across all asset classes.
  • Third, investors await S&P Global flash PMIs later this week to gauge how the US economy navigates elevated oil prices and geopolitical uncertainty, as any signs of economic deterioration would further pressure risk assets.

The divergence between traditional equity markets hitting record highs and crypto markets under siege reveals the immature nature of digital assets as an investment class. While the S&P 500, Nasdaq, and Dow Jones posted gains of 1.20 per cent, 1.52 per cent, and 1.79 per cent, respectively, on April 17, crypto markets have proven unable to insulate themselves from either technical exploits or macroeconomic shocks. This reality challenges the narrative that cryptocurrencies are a mature alternative investment vehicle and instead positions them as highly speculative assets vulnerable to both internal technical failures and external geopolitical pressures.

The week of April 20, 2026, will prove pivotal in determining whether the crypto market can demonstrate resilience amid compound crises or succumb to a more severe correction that could take months to recover from. Investors would be wise to monitor both the technical support levels and the broader geopolitical landscape with equal attention, as the convergence of these factors will likely dictate market direction in the critical days ahead.

 

Source: https://e27.co/while-you-were-sleeping-iran-closed-a-critical-oil-route-and-crypto-exploits-20260420/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j