KATHMANDU, April 28: Nepal Rastra Bank (NRB) is preparing to launch digital currency in the domestic market even as the government is yet to legalize the use of virtual currencies.
Speaking at a program on Wednesday, NRB’s Deputy Governor Bam Bahadur Mishra said the central bank is all set to replace the use of physical currency by virtual currency. NRB is keen to introduce digital currency after India stepped up preparation to launch a digital version of its currency by the end of March 2023.
Digital currency, also called the e-cash, is an electronic form of fiat money issued by the central bank. In recent times, a number of countries have started issuing digital currency to facilitate seamless transfer of value along with reduced transaction costs.
NRB has formed a task force to study the feasibility of implementing digital currency in the country. The central bank has also formed a steering committee headed by deputy governor Mishra to make necessary recommendations regarding the use of digital currency after the panel submits its report.