While countries from all over the world are moving towards the central bank digital currency (CBDC) sector, more countries are also becoming part of it. Among countries wanting to explore the possibility of adopting central bank digital currency, Vietnam can be considered as the latest addition.
Vietnam is reportedly set for exploring the possibilities of adopting the central bank’s digital currency. The country has made the decision of doing that after the Prime Minister of the country has made the decision of doing that.
Initially, it was the Prime Minister of Vietnam who showed great interest in the adoption of central bank digital currency. Pham Minh Chinh, the Prime Minister of Vietnam is the one who came up with the idea of adopting the central bank’s digital currency technology.
He urged the entire political parties in Vietnam to support him in his move towards the CBDC technology. He even urged the Central Bank of Vietnam to look into the CBDC technology and explore ways of adopting it in the most effective manner.
He requested the regulatory authorities of Vietnam to look into the technology and explore the operational requirements of the platform. Furthermore, he requested to find out the feasibility of the CBDCs.
When it comes to the adoption of CBDC, Vietnam has decided to run things differently than the rest of the countries. At present, almost every country is aiming to launch the CBDCs through centralized protocols. On the other hand, Vietnam is aiming to launch the central bank’s digital currency through blockchain. This would eventually make the Vietnamese digital currency decentralized in nature.
According to reports, Pham Minh Chinh, the Prime Minister of Vietnam had made an announcement in regards to the initiative of CBDC. He stated that he wants the Central Bank of Vietnam to work on the development of the central bank’s digital currency. He added that working on the CBDC is part of the initiative that he wants to take towards the development of e-government.
Following the announcement from the Prime Minister of Vietnam, the central bank of Vietnam revealed its plans for the development of CBDC. According to the central bank of Vietnam, it will be working towards the development and then piloting of the CBDC between the years 2021 and 2023.
Although the political parties of Vietnam, the central bank digital currency is welcome for development and implementation. However, the concept of decentralized currencies such as Bitcoin, Ethereum, and many are still in the bad books. Therefore, the cryptocurrency industry has to wait for the Vietnamese political parties to become more accepting of the technology.
It was back in 2018 when Vietnam had banned the utility of Bitcoin (BTC) in the country. Since then, Bitcoin and other cryptocurrencies are banned in the country.