The International Monetary Fund (IMF) has noted a significant rise in cryptocurrency usage in Nepal, despite a complete ban in the country.
According to the organization's report, the influx of digital assets in Nepal began to surge sharply in 2019. By 2021, transaction volumes exceeded 13% of the country's GDP, amounting to $2.6 billion. By 2024, this figure stabilized at around 8%, with stablecoins accounting for the majority of transactions.
In 2021, Nepal's central bank prohibited trading, mining, and any operations involving digital assets. However, IMF statistics indicated that these measures have been ineffective. In terms of cryptocurrency flows, Nepal surpassed neighboring Myanmar and Bangladesh, but still lags significantly behind Vietnam.
The IMF recommended that authorities shift from bans to regulation in line with international standards. According to the fund's experts, this would help control the outflow of deposits from banks and prevent circumvention of currency controls.
Experts noted that the use of digital assets for remittances and trading makes them appealing even in closed markets. Nepal's experience with blocking social media also demonstrated the ineffectiveness of such restrictions, as residents widely transitioned to decentralized services.
The IMF will continue to monitor Nepal's financial stability and insists on implementing consumer protection mechanisms within the crypto industry.
It is worth mentioning that in April 2026, the IMF warned that the growth of the Real World Assets (RWA) market could heighten risks for the global financial system and accelerate the spread of crisis phenomena.