Nepal Allows Crypto Conversion for Humanitarian Aid
Nepal's government has allowed a new system to convert digital assets into dollars for humanitarian aid, circumventing the country's prohibition on cryptocurrency trading and use.
The arrangement, developed by Polygon, Cross River Bank, and Engage Nepal, collects crypto donations through the website NepalRelief.org. The platform accepts cryptocurrencies such as Ethereum, Polygon, and Solana, and converts them into USDC before transferring the funds to the government's disaster relief account through regulated banks.
The system has already collected over $500 in dollars from crypto-to-fiat donations, according to Finance Minister Swarnim Wagle. Meanwhile, NepalRelief.org had gathered $174,831 from donors worldwide.
Cross River Bank executive Pravesh Rijal stated that the team launched the platform within 24 hours after discussing the proposal with Polygon Foundation founder Sandeep Nailwal on August 27. The government gave its no-objection to the arrangement after the three companies approached Finance Minister Wagle.
Ripple has also pledged $300,000 for emergency response in Nepal, while the Solana Foundation and NFT marketplace Mallow raised another $166,946 in USDC by auctioning advertising slots on Solana's official X account. Blockchain for Impact has also pledged $100,000 for Nepal.