Vietnamese Prime Minister Pham Minh Chinh has gave an order to the State Bank of Vietnam to study and carry out a pilot implementation of cryptocurrency based on blockchain technology between 2021 and 2023.

The Prime Minister’s Decision No. 942/QD-TTg on an e-Government development strategy establishing Vietnam as a “digital government” outlined the execution.

As part of a bigger effort to harness the potential of fundamental technologies to move the country’s economy ahead, Vietnam is positioning itself to develop and master blockchain and cryptocurrencies.

The Prime Minister’s Decision No. 942 also stated plans for harnessing artificial intelligence (AI), big data, augmented reality, and virtual reality (AR/VR), all of which are projected to take off and cause disruptions, allowing the government to begin its digital transformation projects.

Meanwhile, in accordance with a previous decision from the Prime Minister (Decision No 664/QD-BTC, April 24, 2020), Vietnam’s Ministry of Finance has established a working group to conduct research into digital assets and cryptocurrencies. The goal of the study is to develop and propose regulatory rules and management mechanisms for digital assets and cryptocurrencies, as well as how these policies and mechanisms would interact with Vietnam’s digital transformation in various industries.

Nghia feels that now is a vital time for the Vietnamese government to examine and launch a cryptocurrency pilot program. This type of application would aid the government in identifying both positive and bad parts of the crypto and blockchain environment, which might be useful in developing digital transformation initiatives.

While cashless payments have been gaining ground in Vietnam, Nghia believes that the central bank’s formal acceptance of digital currencies and cryptocurrencies would speed up the adoption process.

According to Nghia, the pilot implementation will help the government identify positive and negative aspects, if any, while developing a more appropriate management mechanism. While cashless payments are becoming more popular in Vietnam, the central bank’s recognition of digital currencies will help speed up the process.

According to Le Dat Chi, deputy head of the Finance Faculty at the University of Economics, cryptocurrency research was required to give Vietname an advantage in what is now a global competition to adapt to new fundamental technologies like blockchain.

Chi also quoted a poll that revealed that 65-68 central banks around the world are now experimenting with bitcoin, while another group has begun to plan for pilot adoption. Vietnam previously belonged to the third group, which is just involved in observation, but with the planned pilot implementation of bitcoin use, it is now moving into the second group.

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