How Bangladesh can learn from U.S. GENIUS Act

Remittances are a vital pillar of Bangladesh’s economy. In 2024-25 alone, the country received over USD30.00 billion from its diaspora, supporting millions of families and fueling domestic consumption. For many households, these funds are not just supplemental income—they cover essential expenses such as food, education, healthcare, and housing. Despite their importance, sending money home remains expensive, often costing between 5% and 7% per transaction, significantly above the global average. Slow transfers, high fees, and reliance on traditional banking corridors continue to limit the effectiveness of remittances, reducing their potential impact on the broader economy. Reducing costs while increasing remittance volume is no longer optional; it is a strategic necessity.

The United States’ GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, offers a valuable blueprint for reform. Although primarily aimed at U.S. markets, its principles are globally applicable. The Act emphasizes technology-driven payment solutions, regulatory clarity for fintechs, interoperability between financial institutions, and transparent pricing. By fostering innovation while ensuring consumer protection, the GENIUS Act creates a competitive environment where remittances flow faster, cheaper, and more securely. Bangladesh can draw lessons from this approach to transform its remittance ecosystem.

Bangladesh’s current remittance system is dominated by banks and a handful of mobile financial services such as bKash, Nagad, and Rocket. While these providers have expanded access, the system still faces limitations in speed, cost, and reach. Inspired by the GENIUS Act, regulators in Bangladesh could establish a sandbox framework, allowing fintechs and MFS providers to experiment with cross-border payment solutions using technologies like blockchain, stablecoins, and digital wallets. This could enable near-instant transfers directly into recipients’ accounts, bypassing multiple intermediaries and significantly reducing fees. Faster and cheaper remittances would directly benefit families, allowing funds to be used in real-time for urgent needs or investment opportunities.

Another key principle of the GENIUS Act is transparency. In the U.S., providers must clearly disclose fees, exchange rates, and processing times, empowering consumers to make informed choices. Bangladesh could adopt similar standards, creating a marketplace where competition drives efficiency. With transparent pricing, senders can choose the most cost-effective and reliable option, increasing the volume of funds flowing through formal channels. Higher formal remittance volumes not only strengthen the banking system but also improve regulatory oversight, reduce reliance on informal money transfer networks, and enhance anti-money laundering compliance.

Beyond cost reduction, adopting GENIUS-inspired policies offers multiple additional benefits. Improved digital infrastructure for remittances can promote financial inclusion, bringing unbanked populations into the formal financial system. With increased adoption of digital wallets and mobile banking, more people can access savings, credit, and insurance services, contributing to economic resilience. Lower transaction costs also free up household funds for productive purposes, such as small business investment, education, or healthcare, amplifying the developmental impact of remittances.

Moreover, embracing technology-driven payment solutions encourages innovation in the financial sector. Fintech startups can introduce new products, such as automated cross-border payments, real-time currency conversion, and AI-driven fraud detection. These innovations not only benefit remittance recipients but also strengthen Bangladesh’s position as a regional hub for digital financial services. Over time, a modernized remittance ecosystem can stimulate broader economic growth by increasing domestic consumption, supporting micro and small enterprises, and generating new employment opportunities.

Successfully implementing GENIUS-inspired measures requires careful coordination among regulators, banks, and fintechs. Security, consumer protection, and compliance with international anti-money laundering standards must remain top priorities. At the same time, policymakers need to maintain an environment that encourages experimentation and technological innovation. Striking the right balance will be essential to maximize benefits without compromising safety and trust.

Bangladesh stands at a critical digital crossroads. By learning from the U.S. GENIUS Act, the country has the opportunity to modernize remittances, reduce costs, and increase inflows. Strategic adoption of technology, clear regulatory frameworks, and competitive market forces can transform remittances from a costly necessity into a growth engine for the nation. The result would be not only faster and cheaper remittances but also increased financial inclusion, broader economic participation, and long-term digital innovation—benefiting millions of families and strengthening Bangladesh’s economy as a whole.

Author: Banker & Data Science Enthusiast