Nepal's Crypto Ban Hampers Flood Recovery Funding Efforts

Nepal is facing a massive financial challenge after the devastating floods that hit the country in August, leaving behind an estimated $4 billion to $5 billion recovery bill. This staggering figure accounts for nearly one-tenth of Nepal's economy and highlights the significant financing gap the country needs to bridge.

The government has requested financial and technical support from various organizations, with initial aid pouring in through established channels. The IFRC launched a 25 million Swiss franc emergency appeal, while the European Union allocated €2 million for essential relief efforts.

However, Nepal's crypto ban poses an obstacle to direct Bitcoin and stablecoin donations via Nepali wallets. The country's central bank, Nepal Rastra Bank, has explicitly stated that transactions involving Bitcoin, crypto, and stablecoins are illegal, blocking the use of stablecoins in humanitarian payments within Nepal.