Record-breaking remittance inflows have transformed Bangladesh's economy, yet the country maintains a strict ban on cryptocurrency for these vital transactions. In fiscal year 2025, remittances reached $30 billion-a 27% jump from the previous year-despite the central bank's clear prohibition on digital currencies. This article explains why Bangladesh remains firmly opposed to crypto in remittances, how the system functions under current regulations, and what this means for millions of workers sending money home.
Record-Breaking Remittance Growth Despite Crypto Ban
Bangladesh's remittance inflows hit a historic $30 billion in fiscal year 2024-25, marking a 27% year-on-year increase. March 2025 saw the highest monthly inflow ever at $3.29 billion-a 64.7% surge compared to March 2024. July 2025 recorded $2.48 billion, up 29.5% from the previous year. The first quarter of FY2025-26 (July-September) totaled $7.59 billion, a 15.9% rise year-on-year. These numbers have strengthened foreign exchange reserves to $25.63 billion, reversing previous deficits and creating economic stability.
Bangladesh Bank attributes this growth to market-driven exchange rates, dismantling informal channels like hundi, and expanding mobile financial services. A Bangladesh Bank official confirmed that hundi transactions declined significantly, likely due to political transition effects, pushing remittances into official channels. This shift contributed to a $3.3 billion Balance of Payments surplus in FY2025, compared to a $4.3 billion deficit the prior year.
Why Bangladesh Bans Cryptocurrency for Remittances
Bangladesh has prohibited cryptocurrency use for remittances since 2017 under Section 33 of the Foreign Exchange Regulation Act 1947. The central bank views digital currencies as threats to monetary sovereignty and financial stability. Deputy Governor Ahmed Munas stated in September 2025: "cryptocurrencies pose unacceptable risks to monetary sovereignty and financial stability, making their prohibition necessary for now." This stance contrasts with neighboring countries like India and Pakistan, which have explored regulated crypto frameworks for remittances.
IMF mission chief Masahiko Takeda emphasized in July 2025 that Bangladesh must strengthen its regulatory framework before considering any crypto relaxation. Bangladesh Bank Governor Dr. Ahsan H. Mansur reiterated in October 2025 that "cryptocurrency has no place in Bangladesh's remittance ecosystem for the foreseeable future." The central bank issued Warning Notice No. BB/CC/2025/17 on September 15, 2025, explicitly prohibiting any entity from facilitating cryptocurrency transactions for remittances under penalty of license revocation and criminal prosecution.
How Remittances Work Without Crypto
Current remittance channels rely on banks, mobile financial services, and agent banking networks. The bKash mobile financial service provider handles 15.2% of the market, with users reporting faster processing times-some remittances arrive within 12 hours. The Real-Time Gross Settlement system launched in September 2025 has reduced processing time from 24-72 hours to under 4 hours for 85% of transactions.
The Remittance Direct mobile app processes $1.2 billion in remittances with average fees of 3.8%, below the market average of 5.2%. Market share breakdown shows Sonali Bank leading at 18.7%, followed by bKash (15.2%), BRAC Bank (12.4%), and Nagad (10.8%).
| Provider | Market Share | Key Features |
|---|---|---|
| Sonali Bank | 18.7% | State-owned bank with extensive branch network |
| bKash | 15.2% | Mobile financial service with 4.2/5 user rating |
| BRAC Bank | 12.4% | Specialized in microfinance and digital remittances |
| Nagad | 10.8% | Rapidly growing mobile financial service |
| Other Providers | 42.9% | Includes 52 scheduled banks and 18 money transfer operators |
Challenges in the Current System
Despite growth, the system faces significant hurdles. Transaction costs average 6.5%, far above the Sustainable Development Goal target of 3%. Exchange rate discrepancies between banks average 1.2%, causing frustration among users. Rural recipients face barriers: 18% lack proper documentation like National ID cards, hindering access to services.
Reddit user DhakaDave1987 reported bKash processing UAE remittances in 12 hours, while SylhetiAbroad complained about 7% fees for UK remittances. A Prothom Alo forum user lost $300 in fees on a $500 remittance from Malaysia. Facebook group "Bangladeshi Expats Worldwide" shows 63% of members frustrated with traditional channels, though only 12% attempt crypto due to legal risks.
Future Outlook: Digital Progress Without Crypto
Bangladesh Bank targets 95% digital remittance processing by FY2026-27. Integration with India's Unified Payments Interface (UPI) is expected by Q2 2026, streamlining remittances from India's 1.2 million Bangladeshi workers. The Asian Development Bank projects 15-18% remittance growth for FY2026 despite global economic headwinds.
While Bangladesh Bank projects remittances could reach $40 billion by FY2028, independent analysts like Dr. Birupaksha Paul caution that growth may plateau at $33-35 billion without addressing high transaction costs and financial inclusion gaps. Crucially, the central bank has no plans to relax its crypto prohibition, with Governor Mansur stating unequivocally that "cryptocurrency has no place in Bangladesh's remittance ecosystem for the foreseeable future."
Is cryptocurrency allowed for remittances in Bangladesh?
No, cryptocurrency is strictly prohibited for remittances in Bangladesh. The central bank, Bangladesh Bank, has banned digital currencies since 2017 under Section 33 of the Foreign Exchange Regulation Act 1947. Any attempt to use crypto for remittances risks criminal prosecution and license revocation for service providers.
What are the main channels for sending remittances to Bangladesh?
Remittances flow through banks, mobile financial services like bKash and Nagad, agent banking networks, and post offices. Mobile financial services now handle 87% of remittances, up from 62% in 2023. The Real-Time Gross Settlement system processes most transactions in under 4 hours, while the Remittance Direct app offers lower fees at 3.8% average.
Why does Bangladesh ban cryptocurrency for remittances?
Bangladesh Bank views cryptocurrencies as threats to monetary sovereignty and financial stability. Deputy Governor Ahmed Munas stated in 2025 that "cryptocurrencies pose unacceptable risks to monetary sovereignty and financial stability, making their prohibition necessary for now." The central bank also cites risks like money laundering, volatility, and lack of regulatory control.
How do transaction costs for remittances compare globally?
Bangladesh's average transaction cost is 6.5%, significantly higher than the Sustainable Development Goal target of 3%. This compares to global averages of 6.1% in 2024. High costs stem from limited competition, regulatory hurdles, and infrastructure gaps. Mobile financial services like bKash and Nagad offer lower fees than traditional banks, but costs remain elevated for smaller transactions.
What future developments are planned for remittances in Bangladesh?
Bangladesh Bank aims for 95% digital remittance processing by FY2026-27. Integration with India's UPI system is expected by mid-2026, which will streamline remittances from India's 1.2 million Bangladeshi workers. The central bank is also expanding agent banking networks to reach rural areas and improving Real-Time Gross Settlement infrastructure for faster processing.
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