The Central Bank of Vietnam is looking into CBDC

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The central bank of Vietnam has shown an interest in joining the digital currency craze, which does not appear to be slowing down anytime soon. As a result, more financial institutions, international organizations, and government-controlled central banks investigate various methods to enter the crypto sector.

Pham Minh Chinh, the Prime Minister of Vietnam, has instructed the Vietnam Central Bank to test a cryptocurrency program in order to build a more digital administration.

The initiative is a vital component of the government’s new e-government agenda. Chinh has directed the state bank to research digital currencies and create blockchain-based money within the next two years.

In a statement titled “Decision No.942/QD-TTG,” Pham Minh Chinh authorized the Vietnam e-government development plan to test a Blockchain/crypto initiative. Artificial intelligence, big data, augmented reality, virtual reality, and blockchain technologies will all be explored in this study.

Notably, the new project is meant to assist the Vietnamese government in determining the risks, dangers, and advantages of digital currency adoption before implementing digital assets. In addition, the project is also intended to help the Vietnamese central bank create a proper digital asset management system.

Vietnam’s central bank is launching a campaign to speed up the country’s digital currency race

The new Vietnam central bank initiative, according to reports, will boost the country’s ambitions in the global digital currency race.

According to Huynh Phuoc Nghia, deputy director of the Institute of Innovation at the University of Economics in Ho Chi Minh City, the recognition of cryptocurrencies by the Vietnam central bank would assist expedite the country’s transition to a more digital economy.

He added that now is the ideal moment for the Hanoi government to investigate and implement a digital currency pilot program and that digital currency is an unavoidable development.

According to Le Dat Chi, deputy director of the Finance Faculty at the University of Economics in Ho Chi Minh City, the investigation should be expedited for the government to progress in the worldwide race for digital currencies.

It’s worth mentioning that this new step indicates the Vietnam central bank’s shift in attitude regarding digital money. Previously, the central bank has cautioned that bitcoin is not legal tender in the nation. It already told banks and other businesses not to accept cryptocurrency as payment.

Furthermore, several central banks worldwide are working on initiatives to issue central bank digital currencies (CBDCs) to their citizens.

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