Nepal is preparing its own digital currency. The issue of digital currency has been addressed for the first time in the monetary policy of the current fiscal year 2078/79 presented by the Governor of Nepal Rastra Bank Maha Prasad Adhikari last Friday.
Speaking on the occasion, Governor Adhikar said, “The central bank is conducting a feasibility study on e-currency even in Nepal in the context of the use and feasibility study of e-currency in the world.”
Because the NRB is not preparing to open the cryptocurrency currently in circulation in the world market? Many are asking that question. Digital currencies, on the other hand, are currently used in two different ways in the global market. The first is a digital currency operated by a private company such as Bitcoin. Which has received a great deal of discussion.
However, it is still not allowed as the official currency in the world. Due to the global popularity of digital currencies like Bitcoin, various countries have been working in digital currency lately. China is testing the digital currency under the control of the country’s central bank. On the other hand, India is enacting new laws banning private digital currency and bringing digital currency under the country’s control.
So what is the preparation of Nepal Rastra Bank between two different uses? Narayan Prasad Pokhrel, co-spokesperson of the bank, said, “This agenda has been included in the Central Bank Governance Meeting of SAARC Finance Governors.” The objective is to conduct a joint study on digital currency by the central banks of SAARC countries. ‘After the study, will the central bank switch to fully digital currency? Cash, as well as digital currency, will determine the issue of moving forward together, ‘he said.
The study will also provide guidelines for implementing digital currency by country. Pokhrel says, ‘This study has been led by Nepal Rastra Bank itself. In that sense, Rashtra Bank or another parallel body can bring digital currency to control it. He pointed out that when the current private cryptocurrency is implemented, the preparation of Nepal will be controlled by the NRB as anyone can issue the currency and anyone can use it.
“The digital currency is issued by Rashtra Bank and will be distributed to commercial banks and from there it will reach the general public,” he said. Stating that a study needs to be completed in the first phase for this, he said that the possible risks and benefits of bringing digital currency will also be examined. He also mentioned that the study will determine how long it will be beneficial to replace Cash with full digital currency.