Nepal Moves Closer to Digital Rupee as NRB Completes CBDC Feasibility Study

Nepal Rastra Bank (NRB) has completed a feasibility study on introducing a Central Bank Digital Currency (CBDC), or Digital Rupee, marking a new step in Nepal’s digital financial transformation. The concept paper highlights that the primary objective of a digital currency would be to make the country’s payment system safer, more reliable, and accessible to the public. It could also help expand financial inclusion by providing easier access to digital payments in rural and remote areas. The study further identifies the potential to reduce the costs associated with printing, distributing, and managing physical currency. However, the NRB has noted that implementing a CBDC would require necessary legal, technological, and infrastructure preparations. Amendments to the Nepal Rastra Bank Act and an integrated legal framework for protecting users’ financial data and privacy have also been identified as important requirements. Overall, the feasibility study provides a foundation for Nepal’s potential transition toward a secure, inclusive, and efficient digital currency system, although the Digital Rupee has not yet been launched for public use.