The increase in interest in crypto assets in the Vietnamese economy is putting pressure on this new market to be observed. Yesterday, the Prime Minister of Vietnam requested that a pilot implementation plan for cryptocurrencies and blockchain be studied and carried out between 2021 and 2023.
“Cashless payments are increasing in Vietnam and the recognition of digital currencies by the central bank would help speed up this process”
Indicated the deputy director of the Institute of Innovation of the University of Economics HCM City
The request by the minister is part of “Decision No. 942 / QD-TTg”. The approval of this will create a development strategy for Vietnamese electronic government, through which areas such as artificial intelligence, virtual reality, augmented reality, big data and blockchain will be evaluated.
What is expected to get in Vietnam from cryptocurrencies and blockchain?
According to the deputy director of the Institute of Innovation at HCM City University of Economics, the Vietnamese government hopes that the program will uncover the pros and cons of these new technologies. At the same time, an appropriate implementation mechanism will be developed.
On the other hand, the deputy director of the Faculty of Finance of the same university, thinks that clarifying the study of cryptocurrencies in Vietnam, would help to gain an advantage in the race.
To justify his view, he cited a survey where he found that central banks were responding in 3 different ways to crypto assets.
The first way, which between 65 and 68 banks have chosen, is to respond to innovation by using them in pilot plans.
The 2nd includes those banks that were beginning to develop an implementation plan. Whereas the 3rd way to respond to these technologies was just by observing.
On the other side we have those who think that there is a risk to financial and monetary security, if they undertake this path.
One of them is the president of Next Tech Group, who assures that it is necessary to have an official definition of cryptocurrency. He adds that there are different words that can cause confusion, such as virtual currency, digital currency, electronic money or digital money.
A definitive vision change?
The latest move by the Vietnamese prime minister represents a rather significant paradigm shift.
In the past, the country’s central bank emphasized that cryptocurrencies were not legally recognized in the national territory.
In 2018, this entity came to prohibit commercial banks and payment service platforms from making transactions with cryptocurrencies, justifying that these could promote criminal activities such as terrorist financing and money laundering.