In the next two years, Vietnam’s central bank will test a cryptocurrency implementation program.
The government wants to look at the benefits and drawbacks of virtual assets while also developing a management system.
The central bank’s acceptance of digital currencies could hasten the country’s transition to cashless payments.
As part of the country’s e-government growth goal, Vietnam’s Prime Minister has asked the country’s central bank to test a blockchain-based cryptocurrency over the next two years.
Vietnam’s Prime Minister, Pham Minh Chinh, feels that digital money is a “inevitable trend.” From 2021 to 2023, the country’s leader has ordered the State Bank of Vietnam (SBV) to trial a cryptocurrency deployment.
The crypto pilot seeks to let the government analyze the benefits and downsides while building an appropriate management structure, according to Huynh Phuoc Nghia, deputy director of the Institute of Innovation under the University of Economics HCM City.
He went on to say that the country had experienced an increase in cashless payments, and that “the central bank’s recognition of digital currencies will help to speed this trend.”
In addition to cryptocurrencies, Vietnam’s e-government growth strategy considers artificial intelligence, big data, augmented reality, virtual reality, and blockchain technologies.
In May, the country’s Ministry of Finance established a research group to look into crypto-related regulations. Vietnam has already stated that cryptocurrencies are not legal tender in the country.
Vietnam has prohibited the usage of cryptocurrency in payments since 2017. Commercial banks and payment service providers were barred from doing cryptocurrency transactions in 2018. Money laundering, terrorism financing, and tax evasion, according to the SBV, might all be increased by digital asset operations.
At the time, the Prime Minister issued a directive aimed at improving the administration of new asset class-related operations.
Since there are no precise definitions for virtual assets in the country, the central bank has not stated its position on cryptocurrencies. To date, the SBV has not issued any licenses for crypto trading platforms./n
