Vietnam’s central bank, State Bank of Vietnam has declared the use of digital currencies in the country as illegal. The central bank also announced that it will impose a fine on anyone caught utilizing the cryptocurrencies starting early 2018.
Based on the new monetary law issued by the bank that is scheduled to go into effect during the first quarter of 2018, Bitcoin and other virtual cryptocurrencies are already considered as illegal and their use will be prohibited in the country. The law also states that the only authorized payment methods in the country are those issued or controlled by the State Bank of Vietnam.
Performance of Bitcoin and other digital currencies in the market and possible effects of the ban
The ban imposed by the State Bank of Vietnam comes at a time where Bitcoin, the leading cryptocurrency, is setting record highs in trading markets. This is expected to affect the impact of the new law on the use of virtual currencies in the country. It is certain however, that the ban on virtual currencies will have little or no effect on individuals who want to use them in their transactions. The only thing the government can do is to launch a campaign against centralized companies using digital currencies.
The decision by the central bank to declare cryptocurrencies as illegal is viewed as very unfortunate, as it stifles innovations in the financial sector. However, the law can be considered as a way by the government to emulate the actions of other countries around the world. It’s expected that this ban can be lifted in the future if the fears or apprehensions of possible scams involving the use of the digital currencies will be proven otherwise.
