The pilot implementation of cryptocurrency is being studied, which is expected to push up cashless payment and the formation of a digital Government. (Photo: thanhnien.vn) This was highlighted inthe Prime Minister’s Decision No 942/QD-TTg about the e-Government developmentstrategy towards a digital Government.
Cryptocurrency based on blockchain is among core technologies Vietnam hopes todevelop and master, as well as artificial intelligence (AI), big data,augmented reality and virtual reality (AR/VR), which are expected tocreate significant breakthroughs as well as favourable conditionsfor building a digital Government.
There are no specific definitions for cryptocurrency and virtual assets inVietnam. For many years, the State Bank had stressed thatcryptocurrencies, including Bitcoin, are not legally recognised in Vietnam andthe use of cryptocurrencies as a means of payment is also not legallyrecognised and protected in the country.
The central bank asked credit institutions not to use cryptocurrencies as atype of currency or a means of payment.
To date, the central bank has not granted licences for any cryptocurrencytrading platforms.
The Ministry of Finance set up a group to study virtual assets andcryptocurrencies under Decision No 664/QD-BTC dated April 24, 2020 to proposepolicies and management mechanisms.
According to Huynh Phuoc Nghia, deputy director of the Institute of Innovationunder the University of Economics HCM City, it’s time for the Government tostudy and carry out pilot implementation for cryptocurrency. “Digital money isan inevitable trend.”
Currently, traditional currencies, including the US dollar, euro and yen, hadgreater influence on the world currency basket and international trade.However, in the race to develop and apply new technologies, there waschance for countries like Vietnam to rise and have a new influence on theglobal financial system.
The pilot implementation will help the Government find positive and negativeaspects, if any, while developing a more appropriate management mechanism, Nghiasaid, adding that while cashless payments are ncreasing in Vietnam, therecognition of digital currencies by the central bank will help accelerate thisprocess.
The study of cryptocurrency needs to be accelerated to gain advantages in therace, Le Dat Chi, deputy head of the university’s Finance Faculty, said. Hecited a survey which found that central banks around the world are having threedifferent responses to cryptocurrency. The first group, which includes 65-68central banks, are piloting cryptocurrency use; the second is starting todevelop a plan for pilot implementation; and the third group are stillobserving. Vietnam is moving from the third group to the second group.
However, there are risks to financial and monetary security, Chi said.
Nguyen Hoa Binh, Chairman of NextTech Group, said that it is necessary to havean official definition for cryptocurrency.
There are different words which might cause confusion, including virtualcurrency, digital currency, cryptocurrrency, electronic money and digitalmoney./.
VNA
