Cryptophobia: Dystopian and Utopian Realities of Cryptocurrency Bans and Regulatory Reactions to Blockchain: A Case Study of Nepal

This article explores the socio-legal implications of fear in response to blockchain through a case study of Nepal. Blockchain and cryptocurrency evoke the cultural imaginary of global societies and elicit both a wonderous utopian response and a fearful dystopian reaction; both have implications for how regulators create rules and structures to limit the development and use of this emerging and disruptive technology. This article looks to Nepal as an often-overlooked case study for cryptocurrency bans, insofar as the regulatory response has been to halt and criminalise the possession and handling of cryptocurrency by Nepalese, both domestically and abroad. This is more than merely fear, and an exploration of this allows for a deeper understanding and rethinking of the promises made by the technology as a tool for good through mechanisms such as remittances, the potential for blockchain entrepreneurism and the practicality of a Central Bank Digital Currency (CBDC).