February 16: At a time when the cryptocurrency issued by the private sector has drawn widespread attention, Nepal Rastra Bank has started preparations to issue its own digital currency (electronic currency). 

At present, NRB is conducting a feasibility study of Central Bank Digital Currency (CBDC), which is in the final stage. 

NRB had included the feasibility study of digital currency in the monetary policy of the current fiscal year. The central bank is preparing to conduct the feasibility study in the context that such studies are being conducted throughout the world.

NRB had formed a six-member task force under the coordination of Anuj Dahal, director of the Currency Management Department to conduct the feasibility study. Executive Director of the department Revati Prasad Nepal said that the study report would be ready this month. 

"The task force is studying the feasibility of digital currency, which is in its final stages," he said, "The study report will probably be ready in 15 days." 

The study report will show the potential of digital currency in Nepal and ways of issuing it. NRB says that the process of issuing digital currency will move forward after the  study is completed.  

The central bank of the country has the right to issue currency of any nature. Accordingly, the right to issue digital currency also belongs to the central bank. However, cryptocurrencies and virtual money that are now traded in the world market have been issued from the private sector. 

The digital currency to be issued by the central bank will be fully legalized, which is called Central Bank Digital Currency (CBDC). 

Such currency is kept safe like gold, dollar and other commodities while issuing paper money. 

NRB says that the difference is only that, in the past, money was issued on paper, but now it will be issued digitally. Even if digital currency is issued, paper currency will also be issued. 

So far, only the Bahamas Central Bank has introduced digital currency. Other countries are still in the study phase.