Written by: Raunak Thapa Magar - 24082, Grade XII
Posted on: 16 August, 2023
Cryptocurrency is a relatively new form of digital money that relies on secure coding techniques. It has gained popularity and could change how we use money globally. But in Nepal, its legal status is uncertain. The government hasn't officially said whether it's allowed. In fact, we do not have a clear policy for cryptocurrency as such.
The debate on whether Nepal should make cryptocurrency legal is complex. There are several perspectives by which people support or oppose this idea, each with its own perspective. One key point is that legalizing cryptocurrency could boost technology and help our economy grow. Cryptocurrencies could change how we do things, especially in finance. Transactions could be faster, cheaper, and more secure. Also, allowing cryptocurrency could bring in new investment opportunities for nepalese. Another important reason is that more people could get access to financial services. People who don't have easy access to traditional banks, especially in remote areas, might benefit.
Think about people who work abroad and send money back home. That's a big deal for Nepal's economy. Cryptocurrencies could make it quicker and cheaper to send money across borders. Moreover, the way cryptocurrencies work might help cut down on corruption. Because all transactions are visible, there's less room for under the table cash transactions. This could increase trust in the government.
Also, by saying "yes" to cryptocurrencies, Nepal could show it's open to new things. This might lead to more partnerships and collaborations with other countries interested in digital money. Cryptocurrency operates in a highly volatile market, marked by rapid and unpredictable price fluctuations. This volatility poses both opportunities and risks, attracting investors seeking high returns while necessitating cautious decision-making due to the inherent instability.
Still, there are concerns. Some worry that if cryptocurrencies are allowed, bad things might happen. People might use them for illegal things, and it could be hard to catch them. Plus, there's the issue of taxes – how would the government collect them if everyone's using digital money?
Cryptocurrency has the potential to change how banking works, especially in places like Nepal. Instead of having one boss in control, it's more like a team effort, which could be good for Nepal's banks. In Nepal, there are places that are hard to reach, and getting to a bank can be a challenge. Cryptocurrencies don't need a specific place, so they could help people in these areas do money stuff without going to a bank.
And since the majority of Nepal's income comes from remittance. Using cryptocurrencies could make sending money across borders faster and cheaper. This could be a big help for Nepal's economy. Another interesting thing about cryptocurrencies is that they use blockchain. It's like a super-honest system where everyone can see the transactions made . There's no middleman messing up the algorithm.
Whether Nepal should legalize cryptocurrencies is a tough question. It's like deciding whether to enter a mid game chess duel. It might be fun, but we also need to be careful not to make mistakes. Whatever happens, cryptocurrencies are changing things, and Nepal has some big choices ahead.
