State Bank of Vietnam to draft regulations for national digital currency

State Bank of Vietnam to draft regulations for national digital currency

BUSINESS/ECONOMY| Oct 31, 2021 | WOZINGA NEWS

State Bank of Vietnam to draft regulations for national digital currency

  • State Bank of Vietnam needs to complete the legal framework for national digital currency by 2022.

By Marielle Petere Wozinga Staff

State Bank of Vietnam to draft regulations for national digital currency

State Bank of Vietnam serves as the central bank. It momentarily receives a task to draft regulations for the digital currency of the country.  

According to the report, the project implementation runs from 2021-2025. State Bank of Vietnam’s task is to complete the pilot’s legal framework by 2022 for the fintech operation in the banking sector.

State Bank of Vietnam and Prime Minister’s Decision

Based on the Prime Minister’s Decision No.1813, the plan aims to promote cashless payment methods in the country. It is also the step to progress in innovation as well as new business models in payment services. 

On the other hand, the government of Vietnam does not reveal a clear description of its national digital currency and assets.  

In the mid-month of June 2021, Prime Minister Chinh ordered the Ministry of Information and Communications. The task is to make regulations on e-verification and identification for privacy data protection.

Meanwhile, the Ministry of Public and Security’s assignment is to instruct data sharing from the country’s citizens which aids the verification and information process. 

Prime Minister Chinh looks forward to the use of e-payment transactions by 2025. Chinh also pointed out that it would be 25 times larger than the current GDP as e-cash payments will be part of it. 

Vietnam Earns the Highest Growth of Cryptocurrency

Also, the plan mentioned that the priority in the next year’s shows that the population is mostly at the age of 15 and beyond. 

Vietnam remains the leading country with the highest growth of crypto adoption in the world, Chainalysis discussed India is in second place, and Pakistan reaches third place.

Based on the 2021 Chainalysis’ Global Crypt0 Adoption Index. Southeast Asia and Central Central have the top three countries with the fastest growth of cryptocurrency adoption. 

However, it has two factors involving the growth of cryptocurrency adoption. First is the cryptocurrency market; second is the transaction activity on DeFi platforms. It varies when it comes to the raw transaction value. 

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