The Prime Minister of Vietnam, Phạm Minh Chính, has finally considered testing out blockchain technology and deep dive into the inner workings of digital currencies with the help of a research group. Many officials feel confident about blockchain being a core technology to develop the market economy and help in establishing a digital government.
The pilot implementation is going to help the government understand different aspects of cryptocurrency and how cashless payments aid economic growth. As of now, no State or Central bank has come forward supporting crypto trading platforms, but many hope that they can understand the intricacies of the blockchain and crypto world after this pilot implementation.
From a regulatory standpoint, we might not see anything significant anytime soon, but this optimistic mindset portrayed by the government is sure going to help citizens gain confidence when receiving their remittance payments. It is a huge factor because Vietnam has the second-highest rate of acceptance among 74 surveyed economies. Being a low-middle-income country, Vietnam has a huge upside with crypto integration.
Image: Statista
The country is also adopting various cashless solutions such as e-wallets and other mobile apps. At the moment, the number of crypto users in Vietnam is estimated to be 1 million and the government believes- it can increase 30x in the next 5-10 years. The research study and pilot implementation will complement each other and assist legal administration in amending the current law.
Vietnam is slowly advancing in the world of technology, and instead of manufacturing foreign goods, they are creating new models to help surpass the rate of GDP by two or four times. It is not only economic growth, but also- the government is also trying to reduce crypto crimes. In the last two or three years, investors in Vietnam lost more than $660 million after Modern Tech went dark. Thousands of investors were duped during the initial coin offering, and now, the government is focused on putting legal frameworks to stop this from happening again.
The government must consider the risks associated with new technology–the possibilities of financial fraud–along with the advancements that can occur by adopting a technology that is increasingly proven and increasingly vital to the technological economy. Once the cryptocurrency ban is repealed or repealed and replaced by the regulation, it will have a major impact on Vietnam’s ability to adapt to the future of money and to remain an important factor in the global economy as a whole.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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