Tag Archives: war

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
j j j

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

War pause, market gain: Why geopolitical hope isn’t enough to sustain this rally

War pause, market gain: Why geopolitical hope isn’t enough to sustain this rally

Major stock indexes closed with mixed results on Tuesday, April 7, 2026, as traders digested a significant geopolitical shift that momentarily redirected market sentiment. The S&P 500 and Nasdaq Composite managed late-session recoveries to post marginal gains, while the Dow Jones Industrial Average slipped into negative territory. This divergence reflects a market carefully weighing the promise of de-escalation against the persistent fragility of global trade. The S&P 500 advanced 0.08 per cent to settle at 6,616.85, erasing an intraday decline of 1.2 per cent once news of a two-week ceasefire between the United States and Iran began circulating. This marked the index’s fifth consecutive day of gains, a testament to resilient investor appetite despite elevated uncertainty.

The Nasdaq Composite followed a similar trajectory, gaining 0.10 per cent to finish at 22,017.85, supported by a late risk-on rotation as ceasefire hopes reduced immediate fears of supply chain disruption. The Dow Jones Industrial Average declined 0.18 per cent, or 85.42 points, to close at 46,584.46. Its performance was weighed down by a sharp 3.39 per cent drop in Walmart, a loss that offset a remarkable 9.37 per cent surge in UnitedHealth Group. This intra-index dispersion highlights how sector-specific dynamics continue to play out against a broader macro backdrop.

The primary catalyst for the session’s volatility was geopolitical. President Trump’s agreement to a two-week suspension of bombing on Iran, intended to allow for negotiations and the reopening of the Strait of Hormuz, triggered an immediate reassessment of risk. Energy markets reacted swiftly, with crude oil prices plunging following the ceasefire announcement. West Texas Intermediate crude fell roughly four per cent to trade just above US$108/barrel, after peaking above US$110 earlier in the session. This move underscores how sensitive commodity markets remain to Middle East tensions, even when those tensions appear to be temporarily dialing back. Simultaneously, traditional safe-haven assets saw renewed interest. Gold rose more than one per cent to trade above US$4,700/ounce, while Treasury yields eased slightly, with the 10-year yield falling to 4.30 per cent. This combination of falling oil and rising gold paints a picture of a market that remains cautious, viewing the ceasefire as a pause rather than a permanent resolution.

Looking ahead, the Asia-Pacific region appears poised to build on the late US recovery. Australian shares are set to open higher on April 8, with ASX 200 futures up 13 points, a gain of 0.14 per cent. This tentative optimism exists within a fragile global trade environment. The United Nations Conference on Trade and Development reports that, while global trade growth has carried over into 2026, it remains vulnerable due to rising trade costs and persistent disruptions in the Middle East. This context is crucial for understanding the limited upside in equity indexes. Investors are not ignoring geopolitical progress, but they are not betting the farm on its durability either.

The cryptocurrency market presented a starkly different picture, surging 4.01 per cent over 24 hours to reach a total market capitalisation of US$2.45T. This move demonstrates a powerful, though not isolated, risk appetite. The crypto market now shows a 97 per cent correlation with the S&P 500, indicating that both arenas are responding to the same macro drivers, particularly shifts in geopolitical risk and liquidity expectations. The primary engine for the crypto rally was a landmark regulatory development. The SEC and CFTC jointly issued a binding interpretive rule on March 17 and 18, 2026, classifying 16 major assets, including Bitcoin and Ethereum, as non-security digital commodities. This move resolves a decade of legal ambiguity and directly encourages institutional participation by reducing the regulatory overhang that has long constrained traditional finance from engaging deeply with core crypto assets. This is not a minor technicality. It represents a fundamental shift in the operating landscape for digital assets in the United States.

Bitcoin itself provided foundational momentum, posting a seven-day gain of 5.79 per cent while its market dominance rose to 58.68 per cent. This strength in the leading asset created a platform for broader speculation. Capital rotated into high-beta sectors, with the Layer-1 category outperforming the broader market by 1.62 per cent. Privacy-focused assets also saw intense interest, with Zcash surging 26.88 per cent on narratives linking privacy technology with AI-driven financial tools. This selective risk-taking suggests an improvement in overall confidence, though the Altcoin Season Index remains at 34, down 2.86 per cent in 24 hours. A sustained move above 50 on that index would signal that a more widespread altcoin rally is taking hold.

The near-term trajectory for crypto hinges on key technical levels and upcoming regulatory dialogue. The market must hold above the US$2.45T pivot point, which aligns with the 38.2 per cent Fibonacci retracement level. A successful test of this support could pave the way toward a move to US$2.49T, the 23.6 per cent Fibonacci level. The most important near-term event is the SEC’s scheduled roundtable on the CLARITY Act on April 16, 2026. Positive commentary from this dialogue could extend the current bullish momentum, while any unexpected negative developments could trigger swift profit-taking. On the downside, a daily close below US$2.34T, the 78.6 per cent Fibonacci level, would invalidate the short-term bullish structure and indicate a deeper correction is likely.

From my perspective, this market action reinforces a critical thesis. The convergence of traditional and digital asset markets is accelerating, driven by macro forces and regulatory clarity rather than isolated speculation. The 97 per cent correlation between crypto and the S&P 500 is not a sign of crypto losing its innovative edge, but rather evidence that it is maturing into a legitimate component of the global financial system. The regulatory clarity provided by the SEC and CFTC is a watershed moment, not because it endorses any particular technology, but because it finally applies a sensible framework that recognises the unique properties of decentralised digital commodities. This allows institutional capital to participate with greater confidence, which in turn reduces volatility and fosters more sustainable growth.

A straightforward answer to the title, “We need more new money to flow in to see a change.” For now, it will be sideways.

 

Source: https://e27.co/war-pause-market-gain-why-geopolitical-hope-isnt-enough-to-sustain-this-rally-20260408/

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