Vietnamese Prime Minister Pham Minh Chinh has ordered the State Bank of Vietnam (SBV) to launch a pilot program to explore blockchain and government digital currency.
According to local media reports, Chin signed a relevant document aimed at developing digital technologies in the country. We are talking about conducting research in the field of artificial intelligence (AI), big data, augmented reality, virtual reality (VR) and blockchain. The prime minister also believes that sooner or later the digital currencies of central banks will become “inevitable,” so he instructed the Central Bank of Vietnam to conduct the necessary research and testing between 2021 and 2023.
Huynh Phuoc Nghia, deputy director of the Institute of Innovation at Ho Chi Minh University of Economics, said the initiative would identify the advantages and disadvantages of government stablecoins and develop effective mechanisms for their implementation. He added that the country is seeing an increase in non-cash payments, so the introduction of the central bank’s digital currency could accelerate the transition to digital payments.
As for cryptocurrencies, the Bank of Vietnam previously stated that they should not be recognized as legal tender in the country. In 2018, SBV banned commercial banks and payment service providers from making transactions with cryptocurrencies, as they can be used for money laundering, terrorist financing and tax evasion. In March, Vietnam’s Ministry of Finance also warned the public about the risks of investing in cryptocurrencies due to the lack of clear regulation in the country.
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