Nepal is in turmoil. Prime Minister KP Sharma Oli stepped down this week after protests against corruption and a controversial social media ban spiraled into the country's worst unrest in decades. At least 22 people were reportedly killed as police used tear gas, water cannons, and live rounds on demonstrators in Kathmandu and other cities.
What started with a ban on 26 social media apps, including WhatsApp, Instagram and Facebook, has turned into a youth-led rebellion against corruption, inequality and censorship. Thousands of protesters, many carrying placards identifying themselves as "Gen Z," scaled parliament walls, set fire to government buildings, and called for a new political order.
Turning to crypto amid the blackout
As authorities tried to silence dissent, young Nepalis found other tools.
One of them was BitChat , a Bluetooth-based messaging app funded by Twitter co-founder Jack Dorsey. Downloads of the app surged to over 45,000 in Nepal over the past week, according to app store data, as people looked for ways to communicate without the internet.
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Others turned to crypto. Despite Nepal's blanket ban on cryptocurrencies, Telegram groups and Reddit forums are buzzing with offers to buy and sell stablecoins like Tether (USDT). Traders are using peer-to-peer swaps and decentralized exchanges to bypass banks and payment providers.
"We can't rely on banks. They serve politicians, not the people," said a 25-year-old protester in Kathmandu, speaking under a pseudonym for fear of arrest. "USDT is the only money that moves when everything else is blocked."
A ban that didn't stop anyone
Nepal's central bank outlawed crypto trading in 2022, warning of "financial instability." That hasn't stopped adoption. According to AAA, a Singapore-based crypto research firm, about 4.5% of Nepal's 30.9 million population, more than 1.4 million people, already own crypto assets as of 2024.
VPNs, decentralized wallets and peer-to-peer apps have made enforcement nearly impossible. During the protests, locals say USDT became a parallel currency to buy essentials and send remittances.
Related: What is Crypto? Cryptocurrency explained
A 19-year-old student who joined the protests said he used Bitcoin to receive funds from a cousin in Dubai. "Western Union takes days and charges too much. With Bitcoin I got money in 10 minutes and paid for supplies," he told TheStreet Roundtable.
Voices from the streets
The demands are bigger than money. Protesters say corruption has left Nepal's economy broken and its youth without jobs.
"We want to see an end to corruption in Nepal. Leaders promise one thing during elections but never deliver," said Binu KC, a 19-year-old college student. "The social media ban was just the last straw."
Another protester, a 25-year-old content creator, put it bluntly, "Gen Z will not stop now. This protest is about more than just social media — it's about silencing our voices, and we won't let that happen."
Even elderly citizens are turning to new tools. "I never thought I would use crypto," said a 63-year-old shopkeeper in Pokhara who didn't want to be named. "But when banks close and cash disappears, you have no choice."
The road ahead
For now, power is in limbo. The army has warned it could intervene if unrest continues, while protesters demand reforms and accountability. With Oli gone, the question is who, if anyone, can restore stability.
Meanwhile, digital workarounds are keeping dissent alive. Whether it's BitChat for messages or USDT for money, Nepal's protesters are showing that bans don't mean much in an age of borderless apps and blockchains.
The bigger question is whether the new government will continue criminalizing crypto, or recognize that millions of Nepalis are already using it.
This story was originally reported by TheStreet on Sep 12, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
