Nepal CBDC Tracker

Nepal is currently in the research phase. However, Nepal Rastra Bank governor Maha Prasad Adhikari said he expects to have a CBDC fully launched in 2026.

CBDC History and Development

In 2022, the Nepal Rastra Bank published its strategic plan for 2022 to 2026. The report only briefly mentioned CBDC. Later in 2022, however, the Nepal Rastra Bank issued a concept report that ultimately concluded that additional research was needed. The report recommended forming a dedicated research unit within the Nepal Rastra Bank, setting a strategic plan, conducting a feasibility study, establishing a legal framework, selecting appropriate policy goals, and similar foundational initiatives.

In 2023, the Nepal Rastra Bank published a report on the payment system. The report noted that the central bank had established a CBDC research unit.

In February 2024, Nepal Rastra Bank governor Maha Prasad Adhikari delivered a speech where he described CBDC as “one of the major strategic areas” for the central bank and that a full rollout is expected in 2026. Before that, however, he said there would be a phased introduction. The first phase was to establish a team at the central bank dedicated to CBDC. The second phase is ongoing with “comprehensive research to come up with appropriate design and technology.” The third phase will be about “partnership and collaboration.” The fourth phase will involve making legal arrangements, testing designs, and piloting a CBDC. The fifth, and final, phase will be the full-scale launch of the CBDC.

In June 2024, Nepal Rastra Bank published a report on the financial stability of the Nepalese economy. The report explained that the central bank had “initiated the study of Central Bank Digital Currency (CBDC).” The central bank also formed a steering committee, a cross-functional study task force, and a CBDC division under the payment systems department.

In July 2024, Kantipur reported that the Nepal Rastra Bank plans to launch a wholesale CBDC. The news was based on a report titled “Roadmap for CBDC Implementation.” Although the HRF CBDC Tracker normally makes all resources available, a spokesperson for the central bank said over email that this report is not available for the public. With that said, Kantipur wrote that the report has a strong focus on both cross-border payments and what other countries are doing.

Human Rights and Civil Liberties Concerns

Nepal earned a 58 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, there are major issues with corruption in Nepal. The issuance or adoption of a CBDC in Nepal could worsen these issues.

According to Freedom House, “Corruption is endemic in Nepal and often goes unpunished.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.