Cryptocurrency Program to be Studied, Implemented in Vietnam: PM

Isabella James, Tech Times 05 July 2021, 03:07 am

A blockchain crypto program is set to be studied by the State Bank of Vietnam (SBV) following the directives of Vietnam Prime Minister (PM) Pham Minh Chinh.

The prime minister has also asked for a blockchain cryptocurrency program to be implemented. The pilot cryptocurrency program will take place during the 2021-2023 period.

Per a report by Viet Nam News, the pilot program aims to "help the government find positive and negative aspects, if any, while developing a more appropriate management mechanism." This is according to Huynh Phuoc Nghia, deputy director of the Institute of Innovation under the University of Economics Ho Chi Minh City.

Blockchain Crypto in Vietnam

(Photo : Pexels)

Prior to the prime minister's directives, cryptocurrencies were not legally recognized in Vietnam

The central bank likewise "has not granted licences for any cryptocurrency trading platforms," according to Viet Nam News.

Credit institutions in the country do not recognize crypto as a currency or as a means of payment.

Cashless payments have been increasing in Vietnam. Nghia believes that the process will be "accelerated" by the central bank's recognition of cryptocurrencies.

The news of a pilot program from blockchain-based currency has been welcomed by various groups and personalities in Vietnam. According to Viet Nam News, NextTech Group chairman Nguyen Hoa Binh said that there is a necessity to officially define cryptocurrency.

Le Dat Chi, deputy head of the finance faculty of the University of Economics Ho Chi Minh City, said that the study "needed to be accelerated to gain advantages in the race."

Vietnam Goes Digital

The pilot program involving blockchain-based cryptocurrency is part of the Vietnamese government's "e-government development strategy" that was signed by the prime minister, according to CoinDesk.

The development strategy also includes the assessment of artificial intelligence (AI) and big data. Augmented reality and virtual reality are likewise included in the strategy. They are "expected to create significant breakthroughs as well as favourable conditions for building a digital government," according to the Viet Nam News report.

Other Countries That Have Gone Crypto

(Photo : FABRICE COFFRINI/AFP via Getty Images)
Alpine Mining co-founder and CEO Ludovic Thomas works at company's main cryptocurrency mining site jam-packed with metal racks lined with hundreds upon hundreds of graphic cards in the tiny southern Swiss village of Gondo on March 9, 2018.

Vietnam joins a list of countries and institutions that have recognized the rise of cryptocurrency around the world.

According to Investopedia, countries where cryptocurrency is legal include Australia, Canada, the U.S., and countries in the European Union. Cryptocurrency was also made legal in Russia last year.

Overseas cryptocurrency exchange is illegal in South Africa, while cryptocurrency mining is banned in Iran.

China's stance on cryptocurrency has been interesting to say the least. The government recently launched a fierce crackdown on money laundering crypto farmers in the country. On the opposite end, the People's Bank of China (PBOC) has referred to cryptocurrencies as "investment alternatives".

Global companies have also joined the cryptocurrency trend. These include IBM, Facebook, which created a cryptocurrency named Libra, JP Morgan Chase, Arias Intel Corp., and Walmart.

Also Read: China Bank Recognizes Cryptocurrency Value,Says it's an 'Investment Alternative'-A Change of Heart?

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Written by Isabella James