Great opportunity to develop Vietnam’s blockchain economy
The year 2021 was said to be disastrous for many industries but Blockchain boomed during the period as all Blockchain-related indexes grew strongly.
Vietnam currently ranks 10th for the Global Cryptocurrency Acceptance Index, which shows that Vietnamese people are very open to Blockchain technology.
According to CB Insights, the funding for this field quadrupled in just one year, from US$3.1 billion for entire 2020 to US$15 billion in the first nine months of 2021.
Vietnam was a bright spot in the global Blockchain world in 2021. Previously, it used to be difficult for Vietnamese companies to compete with foreign tech firms. This gap appears to have narrowed in the Blockchain world, where the starting point of countries is not much different.
Chainalysis commented that Vietnam is a perfect example of a country whose participation in cryptocurrency transactions far exceeds the ranking of its economy.
Ranked 53rd in GDP with about $262 billion, and classified as a low-middle-income country, Vietnam has a fairly high level of acceptance for cryptocurrency transactions. It ranks 10th out of 154 countries for the Global Cryptocurrency Acceptance Index, which is similar to that of developed countries such as the US, China or South Africa, and even higher than the UK, France, Germany, Spain, Japan, and Korea.
Finder's survey conducted with 42,000 people across 27 countries also shows that Vietnam is the country with the highest rate of cryptocurrency adoption. As many as 41% of Vietnamese respondents said they bought cryptocurrency and 20% bought Bitcoin. This is the highest rates among all surveyed countries.
Tran Huyen Dinh - founder and CEO of AlphaTrue technology company – told a recent forum on digital technology that Vietnam can apply Blockchain in digital transformation. But to do this, it is necessary to develop “bridge” applications.
Regarding the applicability of Blockchain, Nguyen Thanh Trung, founder of Sky Mavis, said that in theory, Blockchain technology has many applications. But at present, that is not necessarily true and it has existed for only 4 years. In a more distant future, Blockchain may be applied in financial management or the real estate market to create a public and transparent buying and selling market.
For Blockchain, Vietnam has potential but currently does not have enough human resources to serve this industry. Vietnam needs to find a solution to to take higher steps in developing and creating a billion-dollar industry based on Blockchain technology.
'Great things often come from the simplest things'. This might be the best description for the tech world in 2022.
It is likely that the piloting of virtual currency will be the second sandbox in Vietnam after Mobile Money to offer the market a new and convenient means of payment in the digital economy.