According to a study by the central bank, effectively adopting a retail digital rupee could halve Nepal's reliance on physical banknotes within five years. The transition is projected to save the state exchequer approximately Rs 4.73 billion by reducing recurring expenses tied to banknote printing, transportation, storage, and security.
NRB officials noted that the freed-up resources could be redirected toward high-priority capital expenditure and infrastructure development. Designed for public use, the retail central bank digital currency (CBDC) aims to broaden access to formal banking and digital payment infrastructure. Phasing out physical currency is expected to curb counterfeit risks, lower cash management vulnerabilities, and improve overall transaction security and transparency. The central bank framed the initiative as a long-term strategy to increase financial sector efficiency and align Nepal with international payment standards.
The concept paper emphasizes that launching a digital currency will require structural legal updates. Key legislative steps include amending the Nepal Rastra Bank Act and introducing integrated data protection laws to safeguard user privacy and transactional integrity.
