Albania’s cashless ambitions; Saudi seeks digital remittances

Albania has announced plans to phase out cash-based transactions in its economy by the end of the decade, eyeing a slew of benefits from the move.

According to a report, the Balkan nation aims to become the world’s first cashless society by 2030 in a bold economic experiment. Albania Prime Minister Edi Rama confirmed the plans to lean on digital payments and a raft of emerging technologies to achieve a cashless economy.

While other countries have tinkered with the idea of a cashless economy, Albania is raising the bar with an incoming ban on all cash transactions. Albanians will rely on electronic payments for simple transactions like grocery purchases and transport payments if implemented.

Albanian regulators are already mulling the prospects of operating a cashless economy, with pundits noting that the move will curtail the country’s burgeoning shadow economy. At the moment, the illicit economy makes up nearly a third of Albania’s GDP, with the government seeking to tighten the screws.

Apart from cracking down on corruption, the plan is tipped to attract foreign investment into the Balkan nation. Furthermore, experts note that running a cashless economy increases Albania’s chances of joining the European Union.

The report suggested that the cashless payment will rely on mass adoption of digital wallets with blockchain as the underlying architecture. The blockchain system will create an audit trail for transactions, stifling illegal transactions in the Balkan nation.

Despite the lofty goals, Albania’s path to a cashless economy by 2030 is plagued by challenges. Albania has a low banking penetration rate of nearly 40%, with a streak of banking scandals eroding public trust in the financial system over the years.

Furthermore, there are grave concerns that the plan to phase out cash transactions will affect the elderly and unbanked population. Meanwhile, international observers have raised concerns over increased government surveillance and the erosion of privacy rights from the incoming ban on cash-based transactions.

Digital transactions log impressive numbers

Several countries are racking up small wins in their quest to transition to a cashless economy, accentuated by the volume of digital transactions. In Vietnam, cashless transactions surged by almost 40% in the first six months of 2025 amid rising digital wallet and credit card adoption in the country.

Kazakhstan has also recorded a jolt in its digital payment metrics, with e-payments making 80% of all transactions in the Central Asia country. While African countries are playing catch-up, Rwanda is mulling the prospects of a pseudo-anonymous CBDC to support its pivot to a cashless economy.

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Saudi consumers are turning to digital apps for remittances

Nearly half of all respondents reported that safety and privacy are the primary factors driving their preference for digital apps. Almost all respondents confirmed that the speed of settlement contributes to their use of digital apps for remittance payments.

Meanwhile, 43% of respondents noted that ease of use is a key factor for adopting digital applications. An equal percentage of respondents disclosed that “peace of mind” associated with digital apps accounts for their pivot from traditional remittance systems.

While efficiency and speed top the list for Saudi consumers making the pivot, the report noted that remittances from the Middle East country are at an all-time high. Regarding use cases, 51% of surveyed respondents send funds abroad for charitable use cases, while 42% rely on remittances to support a loved one.

Amid the rising adoption of digital remittance apps, respondents raised concerns over stumbling blocks to efficient cross-border payments. Respondents pointed to steep costs in receiving (33%) and sending (29%) remittances with traditional and digital systems.

Visa’s Regional General Manager for Saudi Arabia, Bahrain, and Oman, Ali Bailoun, underscored the importance of efficient and low-cost digital remittance solutions for Saudi residents.

“Fast, easy and secure payments can make a profound difference for people in Saudi Arabia who send money abroad to support their families and communities,” said Bailoun.

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Digital solutions for remittances gather steam

A wave of digital-based solutions for remittances has taken off in recent years to align with changing consumer behavior. Pakistani authorities are exploring the possibilities of on-chain remittances with blockchain as the underlying architecture.

Guatemala’s banking giant Banco Industrial and Nigeria’s Zone are hurtling toward blockchain-based remittances in a firm embrace of digitization. Meanwhile, Coins.ph and HashKey Group are teaming up to roll out 24/7 remittances between Hong Kong and the Philippines.

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Watch: Peer-to-peer electronic cash system—that’s micropayments

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