Eighty-six percent of central banks, including Vietnam's, are considering the Central Bank Digital Currency (CBDC) for their economies.
Many Asian countries have researched, piloted and even deployed digital currencies using Blockchain technology. In Vietnam, there are only plans on paper.
The Prime Minister has assigned the State Bank of Vietnam (SBV) to study and try to use a cryptocurrency based on blockchain technology as a part of a strategy on e-government in 2021-2025.
The Covid-19 pandemic has attracted capital from Vietnamese investors in cryptocurrencies. About 6 million Vietnamese own digital assets.
The move is part of a national strategy to promote non-cash payment in Vietnam in the 2021-2025 period.
After Axie Infinity, the total capitalization of Coin98 ecosystem has reached the $1 billion mark.
With the price tripling within one week and the capitalization value hitting nearly $1 billion, Axie Infinity, the Blockchain-based game project developed by Vietnamese, has become a global phenomenon.
Vietnam's latest initiatives on promoting blockchain and studying cryptocurrency application are expected to spark huge interest in the country's potential cryptocurrency future.
With total market capitalization value of $1.45 trillion as of June 21, the cryptocurrency ecosystem has attracted investors but has also been an ideal hiding place for illegal activities.
A delay in issuing official legal regulations on managing cryptocurrencies will cause a rise in the risks of fraud and theft related to virtual assets, experts have warned.
Vietnam ranks 4th for profit earned from cryptocurrencies among Asian economies in 2020, only after China, Japan and South Korea.
Experts have warned that a firm legal framework and strict punishment measures are needed to manage virtual financial investment platforms, which they say are now out of control.
All foreign exchange (forex) trading activities in Vietnam are illegal as the authorities have not issued license for any forex trading floor.