The Prime minister of Vietnam has asked the State Bank of Vietnam (SBV) to study and carry out pilot cryptocurrency implementation from 2021-23 periods, reported by Viet Nam News.
Prime Minister Pham Minh Chinh signed Decision No 942/QĐ-TTg approving the e-Government development strategy towards a digital government.
“Cryptocurrency based on blockchain is among core technologies Vietnam hopes to develop and master,” PM Pham Minh Chinh added. They also want to explore the use of artificial intelligence (AI), big data augmented reality, and virtual reality (AR/VR). It will help to create significant breakthroughs and favourable conditions for building a digital government.
The SBV had stressed that cryptocurrencies and their uses were not legally recognized in Vietnam. The central bank has not granted licences for any cryptocurrency trading platform.
“The pilot implementation would help the Government find positive and negative aspects if any, while developing a more appropriate management mechanism,” said Huynh Phuoc Nghia, deputy director of the Institute of Innovation under the University of Economics HCM city.
According to Huynh, it’s time for the government to study and carry out a pilot implementation for cryptocurrency. “Digital Money is an inevitable trend.”
Le Dat Chi, deputy head of the university’s Finance Faculty, thinks study should be accelerated to allow Vietnam to gain advantages in the field of digital currencies. According to a survey, central banks around the world have various responses to cryptocurrency.
Central Banks are categorised into these groups:
- Including 65-68 central banks, were piloting cryptocurrency use
- Starting to develop a plan for pilot implementation
- Group still observing others
Vietnam is moving from the third group to the second group.
World wide Central banks are considering blockchain based implementations for fiat currencies. India and China are also considering CBDC based on blockchain. Recently, Japan’s ruling party announced that their plan for CBDC will be more clear by the end of 2022.
