Vietnam c.bank prioritizes drafting national digital currency policy in 2021-2025

Legal framework for a national digital currency is among priorities to promote non-cash payment in Vietnam during the 2021-2025 period.

The State Bank of Vietnam, the country's central bank.

The State Bank of Vietnam (SBV) revealed the move in Decision No.2006/QD-NHNN detailing the central bank’s action plan to realize Prime Minister Pham Minh Chinh’s instruction to push for non-cash payment in Vietnam in the five years.

Under the plan, the SBV would first finalize the legal framework, including the policy and mechanism for a national digital currency; draft a Government’s decree governing the pilot of fintech’s activities in the banking system.

The SBV is also tasked with providing new incentives to continue promoting non-cash payment methods and support locals access new kinds of payments with affordable costs.

Among other targets, the SBV aims to further upgrade payment infrastructure systems capable of integrating into different systems; promote modern payment methods based on Industry 4.0 technologies; adopt e-payment in the public sector and administrative procedures.

The Government stressed the necessity to raise public awareness on using non-cash payment with safety, convenience, and transparency.

In Prime Minister’s Decision No.1813 on promoting non-cash payment in Vietnam in 2021-2025, the government’s leader targets the value of non-cash payment transactions to be 25 times larger than the GDP, and the proportion of non-cash payments to make up 50% of total transactions in e-commerce.

“In the next five years, the priority is for at least 80% of the population aged 15 and above to have bank accounts, as well as the rate of organizations and individuals using non-cash payments via e-payment channels to reach 40%,” noted the decision.

In late June, Prime minister Pham Minh Chinh asked the SBV to research the use of cryptocurrency based on blockchain technology in the 2021-2023 period.