Kathmandu – The Banking Sector Reform Recommendation Task Force has suggested that the Nepal Rastra Bank (NRB) conduct a feasibility study on crypto mining. The task force, led by Dr. Rewat Bahadur Karki, made the recommendation in its 130-page report submitted to the central bank.

According to the task force, Nepal has begun generating electricity in sufficient quantities, and studying the potential of crypto mining could help ensure effective consumption of surplus power. While many countries around the world are gradually lifting bans on cryptocurrencies, Nepal has adopted a contrary policy approach, the report notes.

The task force highlighted that neighboring countries such as Pakistan, India, and Bhutan have made significant progress in crypto-related activities. Pakistan has established a Crypto Council, while Bhutan reportedly earned USD 500 million by selling Bitcoin, according to reports published last year.

In contrast, Nepal has continued to impose a ban on cryptocurrency activities, citing concerns over regulatory challenges and the outflow of foreign currency reserves. However, the task force stressed that the Nepal Rastra Bank should adopt a more innovative approach and actively explore ways to ease the ban on crypto under a regulated framework.

Despite the existing restrictions, the task force has recommended that Nepal explore the feasibility of crypto mining as a means of utilizing electricity and creating new avenues for economic income.

Banking Samachar, through its special series, has previously highlighted that Nepal may already be lagging behind in identifying the potential of crypto, while also presenting analyses on the possible benefits and risks associated with cryptocurrency adoption in the country.