A task force in Nepal has suggested legislation amendments that would let its central bank launch its own digital currency. The action is on the basis of research findings that state that the initiative is viable on August 7.
According to the report’s conclusions, the Nepalese central bank would allow the Nepal Rastra Bank (NRB) to create a digital version of the nation’s fiat currency, the Nepalese rupee, if the NRB changed the laws controlling its jurisdiction and responsibilities.
Revati Nepal, head of the bank’s currency management division, said the taskforce has already submitted an amendment bill.
The team from Revati Nepal suggested that the regulator should grant the CBDC the legal backing it needs to be put into action before building it. On August 7, he said, “We would send the bill to the government to table it in parliament following internal deliberations” in the Kathmandu Post.
An NRB spokesman added:
“There are suggestions for how technical and economic considerations should be considered.”
The central bank will build a special digital wallet for the CBDC so that online banking transactions may be carried out there. Additionally, steps will be taken to look at interoperability with the suppliers of digital payment services. The Nepal Rastra Bank is taking its time releasing the digital currency, the head stated without hesitation.
He emphasised that we don’t want to implement digital money too rapidly and take an unjustified risk.
The NRB’s research resulted in a concept paper, which the country’s central bank is currently analysing, but Nepal still has a long way to go. The central bank’s director of economic research, Prakash Kumar Shrestha, added:
“Adopting digital money with appropriate technologies acquired from other nations will be wonderful for Nepal.”
He mentioned additional important aspects that should be taken into account, such as cybersecurity.