The State Bank of Vietnam (SBV), the country’s central bank, does not consider cryptocurrencies legal tender and lawful means of payment in Vietnam, according to Nghiem Thanh Son, deputy director general of SBV’s Payment Department.

Deputy Director General of SBV’s Payment Department Nghiem Thanh Son. Photo: VGP.

Given the fact that many enterprises are mobilizing capital via cryptocurrencies, the holding, sale and use of cryptocurrencies as an asset pose numerous risks and are not protected by law, said Mr. Son at the SBV’s press conference on September 22.

Mr. Son said the SBV urged organizations and individuals to refrain from investing and transacting cryptocurrencies.

According to Mr. Son, Prime Minister Nguyen Xuan Phuc in 2017 assigned the Ministry of Justice to finalize a proposal on managing cryptocurrencies. Later, the Ministry of Finance was tasked with drafting a legal framework on virtual assets and currencies.

The SBV has also issued decree No.80/2016/ND-CP amending government’s decree No.101/2012/ND-CP on non-cash payments.

In this decree, the SBV did not include bitcoin and other cryptocurrencies as legal means of payment in Vietnam, and banned any act of issuing, providing and using them.

Meanwhile, Mr. Son said the SBV has been promoting non-cash payment methods as part of  solutions to prevent the spread of the Covid-19 pandemic.

In addition to the revision of number of laws to promote the application of new technologies in online payment, the SBV is cooperating with related government agencies in drafting a new decree on fintech regulatory sandbox in the banking sector, he informed.

The number of online inter-bank payment transactions jumped 13.61% year-on-year in the seven-month period of 2020, while payment via bank cards surged 29.7%, with a 15.8% increase in value.

The number of mobile payment transactions increased sharply by 184.2% in the number and 186.3% in value year-on-year during the period.