To enable the monetary authority to issue a digital version of the nation’s fiat currency, the Nepalese rupee, the Nepal Rastra Bank (NRB), is preparing to amend the statute defining its rights and obligations. The information comes after a study concluded that a central bank digital currency (CBDC) initiative is doable.
A task force has already created an amendment bill, claims Revati Nepal, chief of the bank’s currency management division. The Kathmandu Post on Sunday cited him stating, “after internal discussions, we will send the bill to the government to table it in parliament.” Accordingly, the Nepal Rastra Bank Act 2002 will be amended.
The NRB’s Monetary Policy 2021–22 paper included an announcement about the study on the topic. The regulator should first propose the legal measures that would enable it to execute the CBDC, according to a panel led by Revati Nepal.
Creating a legal framework for the digital currency is one of the specific actions experts have said should be taken. The NRB official said, “There are suggestions for technical and economic issues to be considered.”
The CBDC will have a unique digital wallet created by the central bank so that digital banking transactions can be made there. Mr. Revati clarified, “Measures will also be taken to explore interoperability with the digital payment service providers.”
The chief was unequivocal in saying that the Nepal Rastra Bank is taking its time issuing digital currency. The Himalayan nation’s monetary authority wants to study how South Asian neighbors move forward with introducing their CBDCs.
Many digital currencies are in use today, including decentralized ones like bitcoin. The majority of governments, however, are just beginning to create state-issued digital currencies. In a survey conducted by the Bank for International Settlements and published in 2021, it was found that 86% of central banks were investigating the possibilities of CBDCs, 60% were testing the technology, and only 14% were implementing pilot programs.
