Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnamese PM asks SBV to study cryptocurrency

Vietnamese PM asks SBV to study cryptocurrency

Content image - Phnom Penh Post
Gold plated souvenir Bitcoin coins are arranged for a photograph in London. AFP

Vietnamese PM asks SBV to study cryptocurrency

Vietnamese Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to study and carry out pilot implementation for cryptocurrency based on blockchain technology in the 2021-2023 period.

This was highlighted in Prime Minister’s Decision No 942/QD-TTg about the e-Government development strategy towards a digital government.

Cryptocurrency based on blockchain is among core technologies Vietnam hopes to develop and master, as well as artificial intelligence (AI), big data, augmented reality and virtual reality (AR/VR), which were expected to create significant breakthroughs as well as favourable conditions for building a digital government.

There were no specific definitions for cryptocurrency and virtual assets in Vietnam. For many years, the SBV had stressed that cryptocurrencies, including Bitcoin, were not legally recognised in Vietnam and the use of cryptocurrencies as a means of payment was also not legally recognised and protected in the country.

The central bank asked credit institutions not to use cryptocurrencies as a type of currency or a means of payment.

To date, the central bank has not granted licences for any cryptocurrency trading platforms.

The Ministry of Finance set up a group to study virtual assets and cryptocurrencies under Decision No 664/QD-BTC dated April 24, 2020 to propose policies and management mechanisms.

According to Huynh Phuoc Nghia, deputy director of the Institute of Innovation under the University of Economics Ho Chi Minh City, it’s time for the government to study and carry out pilot implementation for cryptocurrency. “Digital money is an inevitable trend.”

Currently, traditional currencies, including the US dollar, euro and yen, had greater influence on the world currency basket and international trade. However, in the race to develop and apply new technologies, there was chance for countries like Vietnam to rise and have a new influence on the global financial system.

The pilot implementation would help the government find positive and negative aspects, if any, while developing a more appropriate management mechanism, Nghia said, adding that while cashless payments were increasing in Vietnam, the recognition of digital currencies by the central bank would help accelerate this process.

The study of cryptocurrency needed to be accelerated to gain advantages in the race, Le Dat Chi, deputy head of the university’s Finance Faculty, said. He cited a survey which found that central banks around the world were having three different responses to cryptocurrency. The first group, which included 65-68 central banks, were piloting cryptocurrency use; the second was starting to develop a plan for pilot implementation; and the third group were still observing. Vietnam was moving from the third group to the second group.

However, there were risks to financial and monetary security, Chi said.

NextTech Group chairman Nguyen Hoa Binh said it was necessary to have an official definition for cryptocurrency.

There were different words which might cause confusion, including virtual currency, digital currency, cryptocurrrency, electronic money and digital money.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports