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Vietnam Prime Minister orders State Bank of Vietnam to explore crypto

Minister Pham Minh Chinh has urged the State Bank of Vietnam (SBV) to begin operation on a test project for a cryptocurrency.

As per a July 4 report by the Phnom Penh Post, the blockchain-based project is anticipated to occur during 2021 and 2023. The ambition is part of PM’s e-Government improvement game plan in the direction of a digital economy. The 62-year-old leader is Vietnam’s chief Communist Party termed cryptocurrency “an inventible trend.”

Aside from digital currencies, the government hopes to improve digital solutions; this includes Artificial Intelligence (AI), big data, virtual reality, and augmented reality. Chinh is optimistic that this technology plan could establish outstanding milestones for developing a digitally based government.

State Bank of Vietnam (SBV)

Back in 2017, Vietnam enforced a ban on Bitcoin transactions. Despite that, just last May, the nation’s Ministry of Finance established a research team to explore crypto regulations. It is also worth citing that Vietnamese authorities are now searching for the possibilities of blockchain tech. The Ministry of Education and Training of Vietnam began uploading school and university diplomas to the blockchain last year.

Vietnam taking motivated from surrounding countries’ CBDC achievements

Over the past couple of years, the SBV has emphasized its status on cryptos; insisting it is not a legal tender. In 2018, it went the extra effort to prevent banks and payment service providers from processing crypto transactions. This is due to the providers’ role in illicit activities such as money laundering, tax evasion, and financing terrorism.

As per Le Dat Chi, the university’s Finance Faculty deputy head, there is the necessity to expedite the progress of cryptocurrency to be in the race of the developing financial system. Furthermore, Vietnam is considered to be taking a cue from its geographical environment; as its neighbor, China is presently in the last phase of its digital yuan pilot.

Its other neighbor Cambodia is working on Project Bakong, a CBDC system. Thailand has also been doing extensive research into its Project Inthanon. The country recently appointed a provider to create a CBDC prototype. 

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