Decentralized Digital Wallets in Pakistan and the UK: Leveraging Blockchain for Secure, Low-Cost Cross-Border Payments and Financial Inclusion

Abstract

This study explores the role of decentralized digital wallets and blockchain technology in enhancing cross-border payments and financial inclusion, with a focus on Pakistan and the UK. Through semi-structured interviews with 22 participants, including banking professionals, fintech experts, and users of digital wallets, the study examines the benefits, challenges, and potential of blockchain in both developed and developing economies. The findings reveal that while blockchain has the potential to reduce transaction costs and improve the security of cross-border payments, significant differences exist in perceptions and trust between Pakistan and the UK. Participants from the UK demonstrated higher trust in blockchain technology due to a more developed financial ecosystem, while participants from Pakistan expressed concerns about security, regulatory uncertainty, and limited financial literacy. The research highlights the need for improved financial literacy, regulatory clarity, and infrastructure development to foster the adoption of decentralized digital wallets in Pakistan. The study also provides valuable insights into the potential of blockchain to drive financial inclusion in emerging markets.

Keywords:

Decentralized Digital Wallets, Blockchain Technology, Cross-Border Payments, Financial Inclusion, Emerging Markets