Vietnamese Premier, Pham Minh Chinh, has become fond of crypto particularly the idea of Central Bank Digital Currency (CBDC). The Prime Minister has issued special instructions to the State Bank of Vietnam (SBV) that the bank should seriously look into the option of having Vietnam’s own CBDC. The Prime Minister has also set up a timeframe for the bank to complete the project within two years’ time and then commence its countrywide testing.
Under the auspices of the Hon’ble Prime Minister of Vietnam, some decisive decisions have been taken in the Vietnamese Government. One of the prominent decisions was relating to the adoption of CBDC which has been insisted upon by the premier himself. The premier is of the view that there is an urgent need to digitalize government in Vietnam. He stated that the Government functionaries will have to explore further into blockchain technology. This statement of the Prime Minister suggested that the Prime Minister was talking about the concept of CBDC.
The Prime Minister also stressed to urgently deal with other aspects such as AI and encouragement of virtual reality programs.
Thereafter, the Prime Minister addressed SBV and instructed the Governor of the Bank to immediately start working on the project. He suggested that it is time for Vietnam to consider blockchain seriously if it were to remain in the comity of nations. It was directed to the Governor that Vietnam would need to ensure that the project of CBDC should be completed in two years’ time. He also said that after two years he would want to see the CBDC running pilot tests.
However, Vietnamese economic experts are of the view that a lot of work is still required to be done with regard to crypto. There is a vacuum and a lack of understanding of the concept of crypto maturely as the country’s crypto industry is still immature. They claimed that firstly, the Government would need to make sure that it differentiates crypto from securities. After that, crypto regulation is a must for ensuring the safety of investors and the prevention of illegal activities.
Even in the past, there were problems faced by SBV with regard to crypto. Also, SBV at one stage refrained Vietnamese crypto investors to buy or sell Bitcoin. The argument raised at that time was that Bitcoin does not possess any legal status in Vietnam. Similarly, the governmental and private banks in the country were earlier instructed not to deal with crypto payments. They were asked not to facilitate crypto exchanges until they acquire licenses from the concerned regulatory authorities.
In the words of Dy. Director of Ho Chi Minh City’s Economic University, Hyunh Phuoc Nghia, CBDC is inevitable. He argues that CBDC is a trend that Vietnam must also follow in the interest of the country’s economic stability.