Central bank studying feasibility of introducing digital currency in Nepal

KATHMANDU: Nepal Rastra Bank (NRB) has started studying the possibility of using Central Bank Digital Currency to replace existing fiat currency, said Deputy Governor Bam Bahadur Mishra.

Mishra said that the central bank is also studying opportunities and challenges of using services related to cloud technology. “We will continue to study, explore and adopt digital innovations at the NRB and will encourage and facilitate financial system to adopt it,” he said.

NRB has formed two separate panels to study the matter and these committees are studying the practices of digital currencies being carried out by a number of countries including China, Singapore and Hong Kong, among others.

Digital currency is a form of currency that exists only in digital or electronic form and that can operate independently of a central bank. So far, the NRB has not permitted the circulation of digital currency in the country. Moreover, the central bank earlier had issued a caution notice against transactions being carried out via cryptocurrency, a digital currency.

 

Fiscal Nepal |
Friday October 1, 2021, 03:41:08 PM |


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