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NRB seeks to implement digital currency system to minimize use of hard cash

Nepal Rastra Bank (NRB) has started a study on the possibility of using digital currency in the country, with an aim to minimize the use of paper notes.

Prakash Shrestha, executive director of NRB, said the central bank has formed two panels to study the matter. According to him, the panels are studying the practices of digital currencies being carried out by a number of countries including China, Singapore and Hong Kong, among others.

Digital currency is any means of payments that are carried out through electronic means. Cryptocurrency is one of the popular forms of digital currency.

As of now, the central bank has not permitted the circulation of digital currency in the country. A few weeks ago, the apex monetary authority issued a caution notice against transactions being carried out via cryptocurrency.

According to NRB, it has sought to legalise the use of digital currency based on the suitable model. An increasing access to the internet, expanding digitization in the banking system and increasing literacy on the use of technology based transfers are expected to help in implementation of digital currency.

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