Nepal has announced an ambitious plan to modernize its economy through digital payments, unveiling initiatives including joining the Better Than Cash Alliance.
"Nepal recognizes the value of accelerating the use of safe, sound digital payments platforms. We are confident that the opportunities that digital payments provide will help us in making financial systems more transparent, cost effective and inclusive to the people of Nepal,” said Madhusudan Pokharel, Joint Secretary of Nepal's Ministry of Finance.
Nepal plans to to build a new system to digitize tax collection and social security allowances. It also aims to increase the financial independence of women by enhancing access to economic resources such as digital financial services.
Integrating digital payments into the economies of countries such as Nepal can provide many benefits, according to the World Bank Development Research Group.
Digital payments reduce transaction costs, increase transparency, and accelerate access to formal financial services that help people break the cycle of poverty and drive inclusive economic growth.
The government's vision, investment in infrastructure, and regulatory assurances can also encourage private sector innovation and investment.
"We welcome Nepal into the Better Than Cash Alliance and commend them for their determination to grow the economy and empower women," said Dr. Ruth Goodwin-Groen, Managing Director of The Better Than Cash Alliance.
"Digital payments provide sustainable benefits to countries like Nepal that are looking to drive inclusive economic growth. From lowering costs and increasing security to connecting women to the financial mainstream, Nepal's new efforts will help the country grow economically and socially, while also advancing the global digital payments ecosystem."