According to a report by the Vietnam News, Vietnam’s Prime Minister Pham Minh Chinh has ordered the State Bank of Vietnam (SBV) to examine and implement a blockchain-based cryptocurrency pilot program in the years 2021-2023.
He also approved the country’s e-government development strategy, which includes evaluating artificial intelligence, big data, augmented reality, virtual reality, and blockchain technology.
The cryptocurrency pilot program is expected to aid the government in determining the benefits and drawbacks while building an effective management framework according to Huynh Phuoc Nghia, deputy director of the Institute of Innovation at the University of Economics HCM City. Cashless payments are becoming more common in Vietnam, according to the deputy director, and the central bank’s recognition of digital currencies will help speed up the process. He believes that “digital money” is an unavoidable development.
In Vietnam, there are no specific definitions for cryptocurrencies and virtual assets. For many years, the State Bank has emphasized that cryptocurrencies, including BTC (Bitcoin), are not legally recognized in Vietnam. Using cryptocurrencies as a form of payment is likewise not legal.
The SBV outlawed commercial banks and payment service providers from doing crypto transactions in 2018. In its claim, the bank stated that doing so increased the risk of money laundering, terrorism financing, and tax evasion.
The central bank has not issued any licenses for cryptocurrency trading platforms to far.
Under Decision No 664/QD-BTC dated April 24, 2020, the Ministry of Finance established a group to examine virtual assets and cryptocurrencies and recommend policies and management systems.
According to Huynh Phuoc Nghia, deputy director of the Institute of Innovation at the University of Economics in HCM City, the moment has come for the government to investigate cryptocurrency and conduct a trial deployment. “The move toward digital money is unstoppable central e.” Traditional currencies, such as the US dollar, euro, and yen, currently have a bigger impact on the global currency basket and international trade.
However, in the race to develop and implement new technology, countries like Vietnam had an opportunity to advance and exert a new influence on the global financial system.
To obtain an advantage in the race, Le Dat Chi, deputy head of the university’s Finance Faculty, believes that cryptocurrency research should be hastened. According to a survey, central banks around the world have three main reactions to bitcoin. The first group, which consists of 65-68 banks, is piloting cryptocurrency use. The second group is beginning to build a plan for pilot implementation while the third group is still watching. Vietnam has moved up to the second group from the third.