July 6, 2021

Towards E-Governance, Vietnam Launches Central Bank Digital Currency Project (CBDC)

 Vietnamese Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to conduct a pilot project on a blockchain -based central bank digital currency (CBDC).

There are also rumors linking the project may actually be the development of a cryptocurrency.

Whatever be it cryptocurrency or CBDC, if true as rumored, SBV will be the first bank to experience digital asset management experience.

The project is expected to run from 2021 to 2023.

Based on media reports in the country, the steps taken by the prime minister are part of the e-governance development strategy.

It is understood the country's government aspires to set up blockchain-based digital assets, including artificial intelligence or better known as artificial intelligence (AI), virtual reality (VR), augmented reality (AR) and big data.

Vietnam from the very beginning banned the crypto sector including Bitcoin. However, last year the Vietnamese Ministry of Education and Training leveraged blockchain technology by uploading diploma certificates for secondary and university education for more efficient access.

This shows their belief in this technology especially towards e-governance.

So far in Southeast Asia, Cambodia has topped the list as the first country to launch the CBDC in October 2020, known as Bakong. Singapore and Indonesia are rumored to start developing the CBDC around this year. Meanwhile Thailand has awarded a contract to a German company, Giesecke + Devrient Currency Technology to develop CBDC in the country.