Crypto-Mining project in Nepal: The Pilot Project

Rastriya Swatantra Party's latest economic agenda has brought cryptocurrency back into Nepal's national policy discussion. However, the proposal is often misunderstood — RSP has not announced a new cryptocurrency called "Pilot Coin." This is just a proposal.

When Did the Pilot Project Start?

Crypto mining has not started yet in Nepal nor the pilot project in action.

February 2026

RSP publicly introduced the idea before election.
March 2026

The proposal gained stronger political attention as RSP prepared to translate its economic agenda into governance following the party's strong election performance.
Present Status

The pilot remains a proposed policy project, not a confirmed launched mining operation. No legal framework exists yet to operate it.

Nepal hydropower dam — Nepal's vast hydropower resources are at the centre of RSP's digital economy proposal — converting surplus electricity into computational exports.

What Is the Pilot Project About?

Rastrye Swotantra party strongly supports tech and innovation. As bitcoin is one of the biggest and most influencial economic technology, RSP had to make some changes on exising rules. So, Before election manifesto of RSP included a proposal for crypto mining. RSP proposed a pilot project to explore potential use of vast amount of hydropower project for regulated crypto mining within 1 year. However, Nepal rastra bank has strongly opposed this and said its illegal. So, the project is still in proposal stage and has not started yet.

In simple terms: The project asks whether Nepal can convert hydropower into digital export income — turning kilowatts into cryptocurrency.

Why Is RSP Interested in Crypto Mining?

RSP's broader economic plan focuses on transforming Nepal from a labor-exporting economy into a knowledge-based and technology-driven economy. The party has proposed:

Declaring information technology a national strategic industry
Improving cloud infrastructure and increasing IT exports
Using high-performance computing as an export sector

Crypto mining fits into this wider strategy because it uses electricity and computing infrastructure. The idea is not only to produce cryptocurrency, but also to develop a digital infrastructure ecosystem that includes data hosting, AI processing, and cloud services.

Data center computing — RSP envisions crypto mining as part of a broader digital export ecosystem — data centers, AI compute, and cloud services powered by clean hydropower.

Is This Legal Under Current Nepali Law?

This is the biggest challenge for the project. At present, cryptocurrency trading, use, and mining are still treated as illegal by Nepal Rastra Bank. NRB has repeatedly warned the public not to engage in cryptocurrency activities.

For the pilot to become real, the government would need to clarify:

Whether crypto mining will be allowed only for licensed companies
Whether ordinary citizens will be allowed to buy or trade cryptocurrency
Whether mined cryptocurrency can be held, sold, or converted into foreign currency
How mining income will be taxed
Which authority will regulate the sector
How money laundering and illegal capital flight will be prevented
How electricity pricing will be managed for mining companies

Current legal reality: Until these questions are answered through legislation, the proposal remains a policy direction rather than a legal operating framework. No mining can begin without NRB and parliamentary approval.

Why the Project Matters

The proposal matters because it marks a possible shift in Nepal's approach to cryptocurrency. Until now, Nepal's official position has been restrictive, with cryptocurrency trading and mining treated as illegal. RSP's plan does not immediately legalize crypto, but it opens the door for discussion on whether Nepal should regulate the sector instead of banning it completely.

The project also matters because of Nepal's hydropower future. If the country generates more electricity than it can immediately consume or export, energy-intensive digital industries could become an option. For Nepal, the argument is different from coal-powered countries because the proposal is based on clean hydropower.

Supporters argue: Mining can help monetize surplus electricity and develop a digital export sector.
Critics argue: Nepal should prioritize household electrification, manufacturing, and transport electrification before allowing crypto mining.

Important clarification: There is no official "Pilot Coin" announced by RSP or the Nepal government. The available public information refers to "pilot projects for crypto mining," not the launch of a new Nepali cryptocurrency. A coin would mean a new digital token. A pilot project means a small-scale test program. These are very different things.