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The Prime Minister of Vietnam Pham Minh Ching has asked the central bank of the country to conduct research on cryptocurrencies and to pilot the implementation of blockchain-based currencies in the next two years. These efforts are part of this Asian country’s new e-government strategy.
Cryptocurrency is one of the highlights of Vietnam’s Prime Minister’s recent decision to establish a digital government. “Blockchain-based cryptocurrency is one of the core technologies that Vietnam hopes to develop and master,” Vietnam Plus said in a report, apparently referring to a type of coin issued by the state. The English-language news media detailed other priority areas including artificial intelligence, big data, and augmented and virtual reality.
However, before mastering cryptocurrency, the Vietnamese government needs to adopt specific definitions for various types of digital currencies and virtual assets, and fully regulate the cryptocurrency space. In April last year, the Ministry of Finance established a working group to study the matter and put forward regulatory policies.
The State Bank of Vietnam (SBV) has warned in the past that the country does not recognize cryptocurrencies such as Bitcoin. The same applies to their use as a means of payment. The central bank has previously instructed financial institutions not to treat cryptocurrencies as currencies, and regulators have so far not approved any coin trading platforms.
Huang Fuyi, deputy director of the Institute of Innovation of Ho Chi Minh City University of Economics, said that it is time for the Hanoi government to research and carry out digital currency pilot projects. The academic community emphasized:
Digital currency is an inevitable trend.
Nghia also stated that the pilot implementation should help the administrative power to identify positive and negative aspects and develop a “more appropriate management mechanism.” In his view, SBV’s recognition of digital currencies will facilitate this process.
Le Dat Chi, associate dean of the University’s School of Finance, believes that this research should be accelerated to allow Vietnam to make progress in the global competition in the field of digital currency. According to a survey he cited, central banks around the world are at different stages of these efforts. More than 60 institutions are already piloting the use of digital currency, other institutions are making pilot implementation plans, and the third group of banks is just observing the development. Vietnam now wants to enter the second stage.
Compared with other legal currencies, traditional currencies such as the US dollar, the euro, and the Japanese yen have a greater impact on the world currency basket and international trade, Vietnam Plus pointed out. However, the publication pointed out that in the race to develop and apply new technologies, countries such as Vietnam will have the opportunity to increase their influence on the global financial system.
Central banks dedicated to the issuance of central bank digital currency (CBDC) projects include the central banks of China, Russia, the United States, and the Eurozone. The People’s Bank of China has the most advanced project to date, is conducting a large number of domestic trials, and plans to test the digital renminbi (e-CNY) in cross-border transactions with Hong Kong.
Do you want Vietnam to adopt crypto-friendly regulations and issue blockchain-based digital currencies? Share your thoughts on this topic in the comments section below.
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