- 28 July 2021
The right move for Vietnam’s digital currency
A digital currency based on blockchain technology is a trend. It brings many great benefits, opening innovative services, promoting cashless payments. Therefore, Vietnam also needs to carefully study to limit risks and take advantage of the values from this new trend.
The Government has assigned the State Bank to lead the research, build and pilot cryptocurrencies based on blockchain technology in 2021-2023. This is a big step forward in Vietnam. It catches up with the research, development, and piloting of Central Bank Digital Currency (CBDC) that is taking place globally.
Build VND into serviced digital currency: Digital currency will bring many benefits and features superior to traditional paper money. It including reducing the cost of issuance, printing, transportation, inventory, and preservation.
The pilot use of virtual money based on blockchain technology will open up opportunities for research units in blockchain and Fintech. The nature of a national sovereign digital currency is a form of “electronification” of the physical condition of cash, so it will not affect the money supply much. But it still monetary policy and regulation better than other macro policies.
The CBDC is based on blockchain technology and guaranteed by the reputation of the State Bank. They will bring long-term benefits and impacts, contributing to the promotion of cashless payments. New business models based on technology have better development conditions, such as crowdfunding, fintech services.
Besides, Vietnam still needs to expand the Internet infrastructure further. Although Internet coverage in Vietnam is now extended to all regions and regions globally, it is still limited in remote and remote areas.