In August 2022, Nepal Rastra Bank (NRB), a central bank of the nation, disclosed its intentions to build a central bank digital currency (CBDC). However, the bank is currently in the initial phase of the study.
In an interview, one spokesperson said, “We are in the initial phase of the study. That means once the study comes out, maybe after a year or two, because there are certain steps, there are certain modalities, and whether they could be feasible for our country or not. But so far, we are not behind.”
As per the spokesperson, there could be a possibility that wholesale CBDC might be used, but it depends on the institution’s recommendations. If the two acts, which are the National Central Bank Act and the Banks and Financial Institutions Act (BFIA), are amended, then CBDC will be allowed.
The NRB requested that the lawmakers of the country amend the Nepal Rastra Bank Act in order to include provisions for the issuance of digital currency in August 2022. Previously, the Nepal Rastra Bank Act governed the assurance of physical currency.
The NRB has banned the trading and mining of crypto in the country since September 2021. Residents of Nepal have been requested to stay away from participating in any activities related to cryptocurrency. If they are caught engaging in such activities, they have to face the consequences.
Any crypto and stablecoin is still banned in the Napel. However, Nepal will coordinate with two large neighbors, India and China, for the cross-border transactions of CBDC.
Also Read: Nepalese Internet and Email Providers to block Crypto Websites
