Vietnam’s Prime Minister Requests Central Bank To Start Piloting The Use Of Crypto-based Technology

The project will concentrate on the use of digital currency-based technology. According to Vietnamese News sources, Phm Minh has instructed the National Bank to research and execute a trial deployment of digital currency-based technologies in the upcoming two years.

Vietnam has become more friendly towards digital currencies

The country’s government appears to have reconsidered its stance on cryptocurrency. According to reports issued by Vietnam News, Vietnam’s PM has urged the state bank to start piloting the usage of digital currency framework in the near future.

Just recently, Vietnamese institutions were staunchly opposed to cryptocurrency. In 2018, the Country’s Securities Commission prohibited businesses from participating in digital currency-related operations. Furthermore, the Central Bank did not even officially recognize digital currencies like BTC and has encouraged credit companies not to utilize them as a form of commodities or any type of payment.

The government’s shift in position is an important initial step toward greater bitcoin acceptance in the nation. The recent pursuit of blockchain-based frameworks is a part of PM’s e-government growth agenda. The country’s government also aims to advance Big Data, AI, AR, and VR technologies, therefore providing suitable requirements for the establishment of a digital-friendly government.

Deputy Director of Innovation from University of Economics HCM City backed the regulator’s move, speaking to the country’s news outlet that digital currency is an unavoidable trend. The deputy director also mentioned that paperless payments were becoming more popular in Vietnam and that recognizing cryptocurrencies would assist in expediting this trend.

The research and trial deployment will assist the Vietnamese government in determining the benefits and drawbacks of cryptocurrency. As a result, the government will make logical regulatory decisions on crypto assets.

The Vietnam government’s change in stance came after several countries picked sides in the cryptocurrency debate. China has begun a countrywide assault on the sector, closing Bitcoin mining centers and promising to restrict cryptocurrency trade. The Reserve Bank of India has reinforced its anti-cryptocurrencies position, expressing significant concerns about digital assets. Simultaneously, Latin American countries are accepting digital currencies, as El Salvador became the 1st country to accept BTC as legal money. Even though Vietnam has not reached that position yet, the trend speaks well as the adoption of cryptocurrencies grows in the country.

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