Central Bank Digital Currency (CBDC) Set to Become Legal Money in Nepal
Summary
Nepal is moving to give Central Bank Digital Currency legal status under an amendment to the Nepal Rastra Bank Act, while keeping private cryptocurrencies outside the definition of lawful money. The proposed law would expand the meaning of currency to include digital money issued by Nepal Rastra Bank.
Key Points
- A proposed amendment to the Nepal Rastra Bank Act would recognize Central Bank Digital Currency as legal money in Nepal.
- The bill defines digital currency strictly as money issued and backed by Nepal Rastra Bank, not private cryptocurrencies or virtual currencies.
- Officials told lawmakers that private crypto assets are excluded from the central banking law and handled under anti-money laundering rules.
- The revised definition of currency would expand the current law beyond paper notes and metal coins to include central bank-issued digital currency.
