Vietnam Central Bank to explore CBDC

Vietnam Central Bank

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TL;DR Breakdown

  • Vietnam Central Bank to explore CBDC
  • Program to accelerate government digital currency race

The Vietnam central bank has indicated its interest in joining the rush for digital currency, which doesn’t seem to be ending anytime soon. More financial institutions, international organizations, government-controlled central banks, among others, are exploring different strategies to join the crypto industry.

In a move to establish a more digital government, the prime minister of Vietnam, Pham Minh Chinh, has directed the Vietnam central bank to pilot a cryptocurrency program.

The program is a major part of the country’s new e-government strategy. Chinh has instructed the state bank to research digital currency and execute the implementation of a blockchain-based currency within the next two years.

Pham Minh Chinh issued the order in a declaration tagged “Decision No.942/QD-TTG,” authorizing the Vietnam e-government development strategy to pilot a Blockchain/crypto program. The research will focus on exploring the use of artificial intelligence, big data, augmented reality, virtual reality, and blockchain technology.

Notably, the new initiative is expected to help the Vietnam government find out the risk, threats, and benefits of adopting digital currency before embracing digital assets. The initiative is also expected to guide the Vietnam central bank in developing a suitable management mechanism for digital assets.

Vietnam central bank program to accelerate government digital currency race

According to reports, the new Vietnam central bank program will further the country’s ambition in the global digital currency race.

Huỳnh Phước Nghĩa, deputy director of the Institute of Innovation at the University of Economics in Ho Chi Minh City, noted that the recognition of cryptocurrencies by the Vietnam central bank would help accelerate the country’s move to a more digital economy.

He stated that it is the perfect time for the government in Hanoi to research, and carry out a pilot implementation of digital currency, adding that digital currency is an inevitable trend.

Le Dat Chi, deputy head of the University of Economics in Ho Chi Minh City, Finance Faculty, disclosed that the study should be accelerated to enable the government to advance in the global race in the field of digital currencies.

It is worth noting that this new move reveals the shift in the Vietnam central bank stance towards digital currency. The central bank had previously warned that cryptocurrencies such as bitcoin are not legally recognized in the country. It previously instructed banks and other firms not to recognize crypto as currency.

Additionally, a lot of central banks globally are currently working on projects to issue central bank digital currencies (CBDCs) for their citizens.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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