Vietnam Bans Digital Currencies as Means of Payments

Following the digital currency regulation trend put in place by other countries, Vietnam is also joining the race. Reports indicate that a negative legislative framework will be adopted, which is unfortunate for Bitcoin.

According to recent reports, the State Bank of Vietnam has recently made a statement, actively banning the use of digital currencies as a payment method. While the legislative amendment is not yet in practice, it has been passed forward to the government which will likely decide in the upcoming days.

It is important to point out that neither bitcoin mining, the blockchain network, nor bitcoin itself will be banned. However, a number of activities related to the use of digital currencies, such as using them as a payment method, will be banned. Based on this aspect, mining or exchanging bitcoin and other digital currencies for fiat will still be allowed.

Fines ranging from $6,400 and up to $9,000 will be given to those who continue to accept or offer payments in any form of digital currency. While analysts still do not understand the reasoning behind the move, the central bank argued that Bitcoin adoption will hurt the country’s monetary interests and policies. Some believe that the move was inspired by China, which has recently cracked down on digital currency use by banning exchanges and Initial Coin Offerings. Not only this, but Vietnam is actively trying to reform its economy by attracting foreign investment and increasing its work power. This has led some to believe that the country saw digital currencies as a threat and decided to act now.

Bitcoin regulation varies by country now and is almost a gamble. While there are regions which are actively encouraging the use of digital currencies and even subsidising mining electricity costs or start-ups, others are afraid of the effect that mass-adoption could have in the future. It truly isn’t about the possible illegal activities that could benefit from digital currency use, such as tax evasion or money laundering.

Based on everything that has been outlined so far, what are your thoughts on Vietnam’s decision to ban digital currencies as a payment method? How could this affect bitcoin betting? Let us know your thoughts in the comment section below.

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