cbdc, central bank, crypto, cryptocurrencies, cryptocurrency, digital currency, digital rupee, digital yuan, feasibility, nepal, nepal rastra bank, nepalese, project, study

A task force in Nepal has proposed legal changes allowing the country’s central bank to issue its own digital currency. The move comes after a study indicated that such an initiative is feasible and recommended certain provisions that would authorize the regulator to proceed with its realization.

Nepal Central Bank Prepares Legal Ground for National Digital Currency

The Nepal Rastra Bank (NRB) is ready with revisions to the law determining its powers and responsibilities that would allow the monetary authority to issue a digital version of the country’s fiat currency, the Nepalese rupee. The news follows a study concluding that a central bank digital currency (CBDC) is a feasible project.

cbdc, central bank, crypto, cryptocurrencies, cryptocurrency, digital currency, digital rupee, digital yuan, feasibility, nepal, nepal rastra bank, nepalese, project, study

The Nepal Rastra Bank (NRB) was established on April 26, 1956, under the Nepal Rastra Bank Act.

According to Revati Nepal, chief of the bank’s Currency Management Department, a task force has already drafted an amendment bill. “After internal discussions, we will send the bill to the government to table it in parliament,” he added, quoted by the Kathmandu Post on Sunday. The changes will be made to the Nepal Rastra Bank Act from 2002.

The study on the matter was announced with the NRB’s Monetary Policy 2021-22 paper. A team headed by Revati Nepal suggested that before developing the CBDC, the regulator needed to introduce the legal provisions that would allow it to implement it.

The experts have now proposed concrete steps to move ahead, including the preparation of a legal framework for the digital currency. “There are suggestions for technical and economic issues to be considered,” the NRB official said.

The central bank intends to design a separate digital wallet for the CBDC through which digital banking transactions could be carried out. “Measures will also be taken to explore interoperability with the digital payment service providers,” Nepal elaborated.

Kathmandu Not in Rush, Wants to See How China and India Are Doing With Their CBDCs

The executive made it clear that the Nepal Rastra Bank is not in a hurry to issue the digital currency. The monetary authority of the Himalayan nation wants to first observe how neighboring countries in South Asia, including India and China, proceed with introducing their CBDCs. Nepal emphasized:

We don’t want to take the unnecessary risk by rushing into introducing digital currency.

The finance minister of Nepal’s southern neighbor, Nirmala Sitharaman, announced in February that the world’s most populous democracy was planning to launch a digital version of its currency during the next financial year, which began on April 1. Thus, it is set to become one of the largest economies to introduce a digital currency with the Reserve Bank of India (RBI) expected to roll it out in 2023.

Nepal’s other powerful neighbor, China, has been exploring the potential of a CBDC since 2014 and is already conducting trials. Cities like Shenzhen, Suzhou and Chengdu became the scene of the initial launch of its digital yuan in 2020. The tests were then expanded to more regions, including Hainan province, Shanghai and a number of other cities in 2021. The People’s Bank of China offered athletes and visitors a chance to try the e-CNY currency at the Winter Olympics this year.

Various types of digital currencies, including decentralized cryptocurrencies like bitcoin, have been in circulation for years now. However, most governments are in the early stages of developing state-issued digital currencies. According to a survey by the Bank for International Settlements released in 2021, 86% of central banks were researching the potential of CBDCs, 60% percent were experimenting with the technology and only 14 percent were deploying pilot projects.

Nepal still has a long way to go but the NRB’s study produced a concept paper which is currently under review at the bank. “We will identify the way forward after the conclusion of ongoing discussions,” said Revati Nepal. “It will be good for Nepal to introduce digital currency with appropriate technology acquired from other nations,” added Prakash Kumar Shrestha, chief of the central bank’s economic research department who pointed to other important aspects that need attention such as cybersecurity.

TECH NEWS RELATED

HistoryDAO’s Mission to Take History From the Victors and Give It to the Masses

sponsored Humans have sought to preserve memories since prehistoric times, etching images into cave walls and tying knots into a crudely fashioned cord. Tribes and clans gave birth to language that could preserve the past in words, and words found their way into print forms, thereby conceiving history. In ...

View more: HistoryDAO’s Mission to Take History From the Victors and Give It to the Masses

French Central Banker Warns Complex Crypto Regulations Could Create 'Uneven Playing Field'

The governor of France’s central bank, François Villeroy de Galhau, has urged EU regulators to “avoid adopting diverging or contradictory regulations, or regulating too late.” He warned that “To do so would be to create an uneven playing field, risking arbitrage and cherry picking.” French Central Bank Governor Warns ...

View more: French Central Banker Warns Complex Crypto Regulations Could Create 'Uneven Playing Field'

Fed Chair Jerome Powell Updates Work on Digital Dollar — Says US Central Bank Digital Currency Will Take 'at Least a Couple of Years'

Federal Reserve Chairman Jerome Powell says the U.S. central bank is looking at whether to issue a digital dollar with a “very broad scope.” He noted that the Fed is collaborating with Congress and the executive branch on whether to issue a central bank digital currency. Fed Chair Powell ...

View more: Fed Chair Jerome Powell Updates Work on Digital Dollar — Says US Central Bank Digital Currency Will Take 'at Least a Couple of Years'

Ethereum Merge Shows Crypto Is 'Getting Its Act Together': Eric Schmidt

Schmidt also said that if Chainlink can scale, it will be “a major contribution” to the tech industry.

View more: Ethereum Merge Shows Crypto Is 'Getting Its Act Together': Eric Schmidt

Stablecoin Economy Continues to Deflate — USDC's Market Cap Shed $6.7 Billion in 83 Days

Just over two months or approximately 83 days ago, the stablecoin usd coin (USDC) had a market valuation of around $55.52 billion and since then, USDC’s market capitalization has lost 12.05%. For most of 2022, the second largest stablecoin by market capitalization, USDC has been above the $50 billion ...

View more: Stablecoin Economy Continues to Deflate — USDC's Market Cap Shed $6.7 Billion in 83 Days

Google Web3 Lead Says Google Cloud Is a “Layer Zero” for Crypto

Richard Widmann, the head of strategy, Cloud, and Web3 at Google, told Decrypt he believes in a decentralized, multichain future.

View more: Google Web3 Lead Says Google Cloud Is a “Layer Zero” for Crypto

Nigerian Central Bank Hikes Key Interest Rate Just Days After Naira Plunges to New Low

Following the latest meeting of the monetary policy committee, the Central Bank of Nigeria says it has hiked the monetary policy rate to 15.5%. By increasing the key interest rate by 150 basis points, the central bank hopes to “narrow the negative real interest rate gap and rein in ...

View more: Nigerian Central Bank Hikes Key Interest Rate Just Days After Naira Plunges to New Low

Mirandus: Open World MMORPG Finally in Web3

press release PRESS RELEASE. Finally, the moment has arrived. A dozen hours have gone into farming the materials needed for a brand-new mighty axe. The epic weapon crafted at the forge will take the player to unprecedented heights of power, but only for the player to discover it does ...

View more: Mirandus: Open World MMORPG Finally in Web3

Settlements With China — Russia Plans Next Step for Digital Ruble

Web3 and How It Helps the Environment - Dave Uhryniak of TRON DAO Explains

Bank of England Suspends Tightening Policy as Pound Nosedives — Central Bank to Start Purchasing Long-Dated UK Government Bonds

Californian Regulator Files Cease-and-Desist Order on 11 Crypto Firms

Biggest Movers: QNT Hits 6-Month High, ATOM Falls to 20-Day Low

Sam Bankman-Fried Eyes On Bidding For Celsius Assets

Thai SEC Comes After Bitkub Exchange, OpenSea Rewards Whitehats, BIS Working With (at Least) 7 Central Banks on CBDC Projects + More News

Bitcoin Network's Mining Difficulty Drops for the First Time in 2 Months

Wanchain Launches Cross-Chain USDT XFlows With Bridge Upgrade

Bitcoin, Ethereum Technical Analysis: BTC, ETH Lower as Powell Claims There Are 'Structural Issues' With Cryptocurrency

Cryptominers hijack $53 worth of system resources to earn $1

Australia Issues White Paper for Central Bank Digital Currency

OTHER TECH NEWS

Top Car News Car News