HoREA recommends that the State Bank have regulations on digital Vietnamese Dong (e-VND)

The three strategic breakthroughs mentioned the construction of a synchronous and modern infrastructure system in both economic and social aspects, focusing on developing information and telecommunications infrastructure, creating a national digital transformation platform, and gradually developing the digital economy and digital society.

According to HoREA, digital currency has been developed over the past 20 years, including 3 main types.

Horea petitions the National Assembly to have regulations on digital Vietnamese Dong e VND image 1 — HoREA recommends that the State Bank of Vietnam have regulations on digital Vietnamese Dong (e-VND). (Photo: DM)

The first is fiat money, which is backed and managed by the Government or Central Bank of some countries. For example, US Dollar Coin (USDC) or Tether (USDT) or Digital Yuan (e-CNY).

Second, virtual currencies have no government backing and are not considered legal tender.

Third is cryptocurrency that operates on blockchain technology and does not require government or central bank intervention, typically Bitcoin (BTC).

Of these three types, fiat currency is the most suitable digital currency to build the digital Vietnamese Dong (e-VND).

Therefore, HoREA believes that the draft Law on Credit Institutions needs to supplement regulations on digital Vietnamese Dong (e-VND) to meet the requirements of digitalizing currency and credit activities to ensure consistency and consistency with Articles 105 and 106 of the draft Law on Credit Institutions, to be compatible with international practices.

Mr. Le Hoang Chau, Chairman of HoREA, said that the State Bank can refer to the experience of many countries in issuing, paying, electronic transactions and managing electronic currencies.

“Therefore, I propose to add Article 106a. after Article 106 of the draft Law on Credit Institutions. Accordingly, the State Bank shall issue, pay, conduct electronic transactions and strictly and securely manage digital Vietnamese Dong (e-VND) according to the controlled testing mechanism in the banking sector prescribed in Articles 105 and 106 of this Law,” said Mr. Chau.

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