Kathmandu- Nepal is set to move forward by making some improvements to its digital currency policy.

After global trends shifted,especially due to changes in the United States,the country’s preparations had slowed down somewhat, but they are now expected to regain momentum.

At the same time Nepal had been accelerating preparations for a Central Bank Digital Currency (CBDC), the project was affected worldwide after the change in U.S. leadership. Nepal too experienced a similar slowdown.

Recently, as the United States moved away from CBDCs and began focusing more on stablecoins, Nepal,like much of the rest of the world,found itself uncertain but is now trying to move ahead gradually.

From the U.S. to the International Monetary Fund (IMF), there has recently been increasing emphasis on stablecoins. However, Nepal’s key partners, including China, continue to focus on CBDCs. In this context, Nepal is preparing to advance both technologies in parallel.

Although preparations for a CBDC had already begun some time ago, progress slowed midway. Now, separate committees have been formed to conduct technical studies aimed at expanding the system even to the retail level. Similarly, studies have also begun to explore stablecoins.

Nepal Rastra Bank is preparing to adopt a policy that places CBDCs at the center while also accommodating other forms of digital currency and digital assets. Since the current government is also seen as more open toward cryptocurrency, there are expectations of a breakthrough in the digital currency sector.

The central bank has already completed one phase of study on CBDCs and is now intensifying preparations based on those findings. 'At the same time, we cannot ignore currencies such as stablecoins, which are being used globally. Therefore, we will move forward with both together,' said a senior official at Nepal Rastra Bank.

The global economy now stands at the threshold of another transformation of money. The shift from cash to digital payments has already progressed significantly, but the debate is no longer limited to the convenience of mobile banking, QR codes, or digital wallets. New instruments such as CBDCs and stablecoins are emerging and being tested in global markets. A CBDC is a digital currency controlled by a central bank, whereas instruments like stablecoins can exist outside direct government control.

While much of the world continues to push CBDCs in order to preserve monetary sovereignty, financial stability, and state control over the economy, some countries including the United States appear more interested in promoting independent currencies such as stablecoins. The use of such coins, which are pegged to traditional currencies, has also been growing. Nepal is now preparing to advance both concepts simultaneously.