This article will explain the current situation of cryptocurrencies in Vietnam: how many Vietnamese users are there, the most 5 popular cryptocurrencies as well as the updated legal framework of the State Bank of Vietnam (SBV).
Users continue to grow day-by-day
The use of cryptocurrency and blockchains in Viet Nam is currently limited to just one percent of the total population (nearly one million), though experts anticipate that the number could grow to 30 million users in the next ten years. (According to Vietnamnet.com)
Efforts from the governments to protect and support the investors
The State Bank of Vietnam (SBV) has clearly stated that unlike legal tenders, cryptocurrencies (for example, bitcoin) are not considered real money and thus not recognized as payment methods in Vietnamese law.
However, as of late August this year, Prime Minister Nguyen Xuan Phuc had ordered relevant agencies to draft a legal framework for cryptocurrency and other digital assets, which could mean that the cryptocurrencies will be one day accepted in Viet Nam under appropriate management.
An assessment for how the government should approach this process is due to be completed by August of next year. Once that is concluded, it's expected that drawing up the legal documents required to recognize cryptocurrencies under a regulatory framework will be completed by the end of 2018.
Below are the most five popular cryptocurrencies in Vietnam. For those who are interested, we recommend Ethviet.com - a free website where you can update real-time price, market capital, Volume of transaction, etc. of almost 700 types of cryptocurrencies.
Back in 2009, the exchange rate for bitcoin was about 30 US cents per bitcoin, and it is now roughly US$4,000 per bitcoin, with a record high of $5,000, stated Ha Ton Vinh, Chairman and CEO of Stellar Management Corporation during a September conference on digital cash and blockchain in Ha Noi.
He commented that the sharp hike in the value of bitcoin is due to investors’ speculation, creating hundreds of millionaires in the span of less than a decade while expanding technology and financial application over other economic sectors with about $2 billion spent on bitcoin research over the past five years.
Ethereum was proposed in late2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. This cryptocurrency is the potential and direct rival of Bitcoin since its growth is tremendous. To illustrate this, according to Ethviet.com (a free website where you can get pricing update of nearly 700 cryptocurrencies), in just one month (16 Sept to 16 Oct 2017), there is an increase of nearly $93.5 in ETH value.
Litecoin (LTC) is a peer-to-peer cryptocurrency and open source software project released under the MIT/X11 license. Creation and transfer of coins are based on an open source cryptographic protocol and is not managed by any central authority. While inspired by, and in most regards technically nearly identical to Bitcoin (BTC), Litecoin has some technical improvements over Bitcoin, and most other cryptocurrencies, such as the adoption of Segregated Witness, and the Lightning Network. These effectively allow a greater number of transactions to be processed by the network in a given time, reducing potential bottlenecks, as seen with Bitcoin. Litecoin also has almost zero payment cost and facilitates payments approximately four times faster than Bitcoin.
Zcash is a cryptocurrency that grew out of the Zerocoin project, aimed at improving anonymity for Bitcoin users. The Zerocoin protocol was initially improved and transformed into Zerocash, which thus yielded the Zcash cryptocurrency in 2016. The founder and CEO of Zcash is Zooko Wilcox-O'Hearn. Its founding team includes cryptographer Matthew D. Green from Johns Hopkins University. Roger Ver was one of Zcash's initial investors.
Zcash payments are published on a public blockchain, but users are able to use an optional privacy feature to conceal the sender, recipient, and amount being transacted. Like Bitcoin, Zcashhas a fixed total supply of 21 million units.
Zcash affords private transactors the option of "selective disclosure", allowing a user to prove payment for auditing purposes. One such reason is to allow private transactors the choice to comply with anti-money laundering or tax regulations. "Transactions are auditable but disclosure is under the participant's control." Wilcox has hosted virtual meetings with law enforcement agencies around the U.S. to explain these fundamentals and has gone on the record of saying that "they did not develop the currency to facilitate illegal activity".
On April 4, 2017, Zcash entered the top 10 cryptocurrencies by market cap.
Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network by Ripple. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol, it is built upon a distributed open source Internet protocol, consensus ledger and native cryptocurrency called XRP (ripples). Released in 2012, Ripplepurports to enable "secure, instant and nearly free global financial transactions of any size with no chargebacks." It supports tokens representing fiat currency, cryptocurrency, commodity or any other unit of value such as frequent flier miles or mobile minutes. At its core, Ripple is based around a shared, public database or ledger, which uses a consensus process that allows for payments, exchange, and remittance in a distributed process.
The network is decentralized and can operate without Ripple (enterprise), it cannot be shut down. Among validators are companies, internet service providers, and the Massachusetts Institute of Technology.
Used by companies such as UniCredit, UBS, and Santander, Ripple has been increasingly adopted by banks and payment networks as settlement infrastructure technology, with American Banker explaining that "from banks'perspective, distributed ledgers like the Ripple system have a number of advantages over cryptocurrencies like bitcoin," including price and security.