Top Cryptocurrency News: Nepal is Planning to Issue a Digital

What specific research are you referring to, and what measures

In Nepal, a task force has suggested legislation reforms 

that would allow the country's central bank to establish its own digital currency. 

The move comes after a research concluded that such an effort is feasible and proposed specific measures that would allow the regulator to move forward with its implementation.

The Nepal Rastra Bank (NRB) is preparing to amend the law governing its powers and responsibilities, allowing the monetary authority to issue a digital version of the Nepalese rupee, the country's fiat currency. The announcement comes after a research concluded that a central bank digital currency (CBDC) is a realistic initiative.

According to Revati Nepal, head of the bank's Currency Management Department, a task force has already drafted an amendment bill. According to him, "we will bring the bill to the government for consideration after internal deliberations" and then introduce it in the parliament. The Nepal Rastra Bank Act will undergo the modifications commencing in 2002.

The study was announced alongside the NRB's Monetary Policy 2021-22 document. A team led by Revati Nepal proposed that before developing the CBDC, the regulator introduce the legal provisions that would allow it to be implemented.

The experts have now suggested tangible steps forward, including the creation of a legal framework for digital currency. The NRB representative stated that there are ideas for technical and economic concerns to be explored.

The central bank aims to create a separate digital wallet for the CBDC, by which digital banking transactions would be carried out. Experts explained that steps will also be taken to investigate interoperability with digital payment service providers.

The executive categorically stated that the Nepal Rastra Bank is not in a rush to launch a digital currency. The Himalayan nation's monetary administration wishes to first monitor how neighboring South Asian countries, particularly India and China, proceed with the introduction of CBDCs.

Nirmala Sitharaman , the finance minister of Nepal's southern neighbor, announced in February that the world's most populous democracy planned to deploy a digital version of its currency during the new fiscal year, which began on April 1. As a result, it is on track to become one of the world's major economies to launch a digital currency, with the Reserve Bank of India (RBI) planning to do so in 2023.

For years, various types of digital currencies, including decentralized cryptocurrencies such as bitcoin, have been in circulation. However, most countries are still in the early phases of creating state-issued digital currencies. According to a 2021 poll conducted by the Bank for International Settlements, 86 percent of central banks were investigating the potential of CBDCs, 60 percent were experimenting with the technology, and just 14 percent were launching pilot programs.

Nepal has a long way to go, but the NRB's analysis resulted in a concept paper that is presently being reviewed by the bank. “Following the end of ongoing conversations, we will determine the next steps,” according to Revati Nepal. “It will be beneficial for Nepal to introduce digital currency using appropriate technology acquired from other countries,” according to Prakash Kumar Shrestha, chief of the central bank's economic research department, who also mentioned other crucial issues that require attention, such as cybersecurity.