Vietnam PM jumps on the Blockchain Bandwagon- asks central bank to study cryptocurrency

Vietnam has been one of the loudest supporters of the cryptocurrency industry; it has made it possible for the first time for businesses to have a legal right to accept cryptocurrency as a mode of payment. However, the country’s position on blockchain technology is ambiguous.

The Vietnamese Prime Minister Nguyen Xuan Phuc, in an apparent attempt to woo the local cryptocurrency community, has asked the nation’s central bank to research the risks of cryptocurrencies and use blockchain technology.

Japan’s Prime Minister Shinzo Abe has officially named central bank official Toshihide Endo to head a panel to study the cryptocurrency industry. The move comes amid efforts by the government to regulate digital currencies such as bitcoin. The announcement came after Japan’s parliament passed a law allowing people to pay taxes in bitcoin.  Mr Abe has built a reputation for pro-bitcoin policy in the past, including recently announcing that the country would be accepting bitcoin payments for government-issued welfare payments.

Vietnamese Prime Minister Pham Minh Chinh has finally thought of using a research team to test blockchain technology and dive into the workings of digital currencies. Many officials believe blockchain will become an important technology for developing a market economy and help create a digital government.

The pilot implementation will help the government understand the various aspects of cryptocurrencies and how cashless payments contribute to economic growth. So far, no government or central bank has come out in favor of cryptocurrency exchange platforms, but many hope to understand the intricacies of blockchain and cryptocurrencies after this pilot implementation.

From a regulatory point of view, we may not see anything significant in the near future, but this optimism from the government will certainly help to increase citizens’ confidence in receiving remittances. This is an important factor, as Vietnam has the second highest admission rate among the 74 countries that participated in the study. As a lower-middle-income country, Vietnam has great potential for crypto-currency integration.

Image: Statista

Various cashless solutions like e-wallets and other mobile applications are also being introduced in the country. Currently, the number of crypto currency users in Vietnam is estimated at 1 million, and the government estimates that this number could increase by a factor of 30 in the next 5 to 10 years. The scientific study and pilot implementation will complement each other and assist the judicial administration in making changes to the current law.

Vietnam is slowly developing in the world of technology. Instead of producing foreign goods, it creates new models that will double or quadruple GDP. It’s not just economic growth, it’s also – the government is also trying to clamp down on crypto-currencies. Over the past two to three years, investors in Vietnam have lost more than $660 million following the eclipse of Modern Tech. Thousands of investors were scammed in the Initial Coin Offering, and now the government is focusing on creating a legal framework to prevent this from happening again.

The government must consider the risks associated with new technologies – the possibility of financial fraud – and the progress that can be made in the application of technology, which is increasingly validated and important to the technology economy. Once the ban on cryptocurrencies is lifted or lifted and replaced with regulation, it will have a major impact on Vietnam’s ability to adapt to the future of the currency and remain an important factor in the overall global economy.

Vietnam PM jumps on the Blockchain Bandwagon- asks central bank to study cryptocurrency

Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.

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Sign up to be notified of the latest posts.With the world seemingly moving towards a more digital world, Vietnam’s Prime Minister Nguyen Xuan Phuc has decided to jump on the cryptocurrency bandwagon by asking his government to launch a nationwide survey to assess cryptocurrency users and their needs.. Read more about kardiachain and let us know what you think.

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