From Policy to Practice: Delivering Financial Inclusion Through Stablecoins in the Pacific

By Drew Bradford, CEO of Macropod

Financial inclusion is one of the most widely discussed objectives in global finance. Yet for many of the people who need it most, access to efficient, affordable financial services remains constrained by infrastructure that has changed little in decades.

For Pacific Island workers participating in seasonal labour programs in Australia and New Zealand, this challenge is not theoretical—it is experienced every payday.

Each year, more than 30,000 workers participate in Australia’s Pacific Australia Labour Mobility (PALM) scheme alone, supporting critical sectors such as agriculture, meat processing, and aged care. These workers are vital to regional economies, while the income they send home underpins entire communities across the Pacific.

Despite this importance, the financial systems supporting these workers remain fragmented, expensive, and slow.

Stablecoins offer a practical and immediate opportunity to change that.

The Persistent Problem in Cross-Border Payments

Cross-border payments today rely on a complex network of correspondent banks, payment intermediaries, and foreign exchange providers. While this system functions adequately for large-value institutional transfers, it performs poorly when applied to high-frequency, low-value remittances.

For Pacific workers, the consequences are significant:

• Remittance costs in the Pacific average around 9% per transaction, among the highest in the world and three times the UN target of 3%

• In some Australia–Pacific corridors, costs remain three times higher than global benchmarks

• Workers often remit $1,000–$1,500 per month, meaning a meaningful portion of income is lost to fees

• Settlement delays can extend to several days, particularly across smaller island nations

These inefficiencies are not marginal—they materially reduce the economic impact of remittances.

And that impact is substantial.

Across Pacific Island economies, remittances account for over 10% of GDP on average, and as high as 40%+ in countries such as Tonga and Samoa. In practical terms, this means that every percentage point lost to fees is directly felt at the household and national level.

Recognising this, the G20 has established an ambitious roadmap to improve cross-border payments by 2027, centred on four measurable objectives:

• Lower costs

• Faster speeds

• Greater access

• Improved transparency

While incremental improvements have been made, it is increasingly clear that achieving these goals at scale requires new infrastructure—not further optimisation of legacy rails.

Stablecoins as a New Financial Rail

Stablecoins represent a fundamentally different approach to moving value across borders.

By combining fiat currency stability with blockchain-based settlement, stablecoins enable:

• Near-instant transactions, operating 24/7 rather than within banking hours

• Direct wallet-to-wallet transfers, bypassing multiple intermediaries

• Programmable functionality, enabling automated and conditional payments

• Interoperability with digital platforms, including wallets, cards, and financial applications

This is not simply an efficiency gain—it is a structural shift.

Instead of value passing through a chain of institutions, it moves directly between participants. The result is lower cost, faster settlement, and broader access.

A Real-World Application: The Pacific Worker Corridor

At Macropod, our focus is on applying this technology to real-world problems. One of the most compelling use cases is the Pacific worker corridor between Australia, New Zealand, and Pacific Island nations.

Through the development of AUDM, an Australian dollar-denominated stablecoin, we are exploring how stablecoins can materially improve outcomes for this group.

How the Model Works

The model is deliberately simple and designed to integrate with existing systems:

1. Wage Distribution
Employers pay wages directly in AUDM into a worker’s digital wallet.

2. Secure Storage
Workers hold funds digitally, reducing reliance on cash and improving security.

3. Flexible Spending
AUDM can be used via payment cards or converted into fiat as required.

4. Efficient Remittances
Funds can be sent home instantly, significantly reducing fees and delays.

5. Optimised FX Conversion
Currency conversion occurs only when necessary, minimising repeated FX costs.

Delivering Against the G20 Objectives

This model directly maps to the G20’s four pillars:

Cost Reduction
Reducing remittance costs from ~9% toward sub-3% levels could unlock tens of millions of dollars annually for Pacific households.

Speed Improvement
Transactions settle in seconds rather than days, improving liquidity and certainty for recipients.

Access Expansion
Digital wallets provide financial access to individuals who may not have full banking services.

Transparency Enhancement
Blockchain-based transactions create clear, auditable records, improving trust and oversight.

This is not an incremental improvement—it is a step-change in efficiency.

Beyond Payments: A Foundation for Inclusion

The opportunity extends well beyond remittances.

Once workers are connected to a digital wallet ecosystem, a broader financial layer becomes accessible:

• Savings and yield-bearing products

• Micro-insurance

• Credit scoring based on transaction data

• Government or employer-linked benefit distribution

Stablecoins become the entry point into a modern financial system, not just a payments tool.

A Strategic Dimension

There is also a broader regional dynamic.

Pacific economies are among the most remittance-dependent in the world. In 2023 alone, the region received approximately US$1.3 billion in remittance inflows, making it one of the most important external funding sources for these economies.

Payment infrastructure, therefore, is not neutral—it shapes economic resilience and alignment.

Efficient, transparent financial rails built on stablecoins can strengthen connectivity between Pacific economies and trusted financial systems, while reducing reliance on fragmented or opaque alternatives.

From Innovation to Implementation

The case for stablecoins in financial inclusion is now well understood. The focus must shift to execution.

Delivering this at scale requires coordination across:

• Regulators, to provide clarity and enable innovation

• Financial institutions, to support fiat on- and off-ramps

• Employers, to integrate new payment rails

• Technology providers, to deliver secure and intuitive wallets

• Governments and development agencies, to support adoption and education

Encouragingly, many of these elements are already emerging across Australia, New Zealand, and the Pacific.

Conclusion: Turning Inclusion into Infrastructure

Financial inclusion has traditionally been framed as a policy aspiration.

Stablecoins allow it to become an infrastructure outcome.

By focusing on real-world corridors—such as Pacific workers in Australia and New Zealand—we can demonstrate measurable improvements in cost, speed, access, and transparency.

The numbers are clear:

• Remittance costs remain among the highest globally

• Workers remit a significant share of their income

• Entire economies depend on these flows

This is precisely where new financial infrastructure can have the greatest impact.

The technology is ready.
The policy direction is aligned.

The opportunity now is to deliver.