A government task force in Nepal has urged the country’s central bank to review how it handles cryptocurrency and other new financial technology. The group said Nepal should not view crypto only through the lens of a ban, but should also study its possible uses.
The task force was formed after Dr. Bishwo Poudel became governor of Nepal Rastra Bank. It is led by former central bank director Dr. Rewat Bahadur Karki. Former banker Bhuvan Dahal and central bank director Guru Prasad Paudel also serve on the team.
The group said Nepal should continue research on crypto instead of relying on a blanket ban. It also recommended a study on the feasibility of crypto mining. Nepal produces more electricity than it consumes at certain times of the year, and the task force said the country should examine whether excess power could support mining operations.
Nepal has banned both domestic crypto activity and investment by Nepali citizens abroad. Despite the ban, many Nepalis continue to invest in digital assets.
The task force also reviewed central bank digital currency, or CBDC. It advised the central bank not to move forward until it completes a full cost‑benefit analysis. Global debate on CBDCs has slowed since Donald Trump became President of the United States.
Nepal Rastra Bank has already conducted preliminary research on CBDCs.
As technology spreads across the banking sector, the task force said the central bank must strengthen its capacity to regulate new systems and protect financial stability.