The prime minister of Vietnam, Nguyen Xuan Phuc, is preparing to propose the legalization of Bitcoin in the country. Since crypto currencies are becoming so trendy, it may be a great way to bring economic prosperity to the small Southeast Asian country.
The plan for legalization is being collaborated with the State Bank of Vietnam and the Ministry of Finance. They are crafting a framework so that Bitcoin may be legalized and regulated by 2018. They are looking for a way to hopefully tax transactions made with Bitcoin, which will greatly supplement government programs.
This is quite the change considering the policies just a few years ago. In 2014, the State Bank of Vietnam had declared that Bitcoin was not a legitimate currency. Although nobody was punished for using the currency, the government would constantly warn citizens not to purchase it.
One change that swayed the government towards Bitcoin was their FinTech steering committee. Financial and tech-based startups embrace Bitcoin and naturally, their committee would likely be in favor of it.
Vietnam already is one of the fastest growing economies in the world, which is why it is now more open to embracing radical free market ideas. The growing economy and growing incomes make a lot of citizens able to invest in high-risk ventures like crypto currencies in order to increase their own wealth.
Theoretically, Bitcoin is a good way for the Vietnamese people to secure their wealth since the country’s currency isn’t exactly stable. A more extreme example would be Venezuela, where citizens are forced to purchase Bitcoin in order to keep their money safe in the event that they leave the country.
Bitcoin is well over $4,000 now and many economists are predicting that it will reach over $5,000 this year. This makes it one of the most rapidly increasing investments and is even beating the precious metals market. Other crypto currencies include Litecoin, ETH, STEEM, Dogecoin and much more. The new legislation would likely include the legalization of these alternative coins.
One unique aspect of Vietnam is that the average citizen is immersed with smartphones and computers yet many do not have regular bank accounts. For this reason, the average Vietnamese citizen may be more open to the idea of using internet currencies like Bitcoin. Bitcoin is a currency that anybody can own without the legal red tape that comes with opening a bank account in the country.