KATHMANDU, Nepal – Nepal Rastra Bank (NRB), the central bank of Nepal, unveiled its ambitious plans in August 2022 to embark on the development of a Central Bank Digital Currency (CBDC). Simultaneously, the NRB made an appeal to the nation’s legislative bodies to amend the Nepal Rastra Bank Act, traditionally governing the issuance of physical currency, to include provisions for the issuance of digital currency.
Since September 2021, the NRB has imposed a ban on cryptocurrency trading and mining within the country. Nepalese residents were cautioned against engaging in any cryptocurrency-related activities, as legal repercussions awaited those caught violating the ban.
Forkast’s Jenny Ortiz-Bolivar recently conducted an interview with Gunakar Bhatta, the spokesperson for Nepal Rastra Bank, to delve into the latest developments surrounding the digital Nepalese rupee, the country’s stance on cryptocurrency bans, and its perspective on stablecoins.
Jenny Ortiz-Bolivar: In August 2022, Nepal Rastra Bank announced its intention to develop a Central Bank Digital Currency (CBDC). Could you provide an update on the current progress?
Gunakar Bhatta: We are currently in the initial phase of our study. This implies that it may take around a year or two to complete the study, as it involves several steps and modalities. We need to determine whether these CBDC plans are feasible for our country. However, we are not lagging behind in this endeavor.
Furthermore, we are collaborating with other countries and global institutions, with a particular focus on our engagement with the Bank for International Settlements. We anticipate receiving technical assistance from various international agencies and have made requests for such support. Once the study is concluded, we will have a comprehensive understanding and a clear roadmap for our next steps.
