The government of Vietnam has set plans to create regulatory guidance on the recognition of Bitcoin. Several parties are involved in discussing the future of Bitcoin and other cryptocurrency in Vietnam. According to CoinDesk.com, Vietnam’s Ministry of Finance and Ministry of Public Safety are working with Vietnam banks in order to draft up a legal framework to regulate cryptocurrencies. This is huge news for cryptocurrency adoption! If Vietnam legally recognizes Bitcoin as a currency then it would mean governments actually see value in cryptocurrency. Official adoption of Bitcoin means a lot for cryptocurrency. This will likely lead to adoption of other crytpocurrency, such as Ethereum, Litecoin, Monero, and others. It may also lead to other countries creating legislation for cryptocurrency adoption.
Vietnam’s adoption is the first step in what Bitcoin seeks to achieve; a currency not tied to any one country’s economy. In fact, Bitcoin could become the world’s first officially recognized decentralized digital currency. Legal regulations also introduce rules for taxation of cryptocurrency. Cryptocurrency taxation is a large grey area with barely any regulations set in place. Vietnam’s Bitcoin adoption will also introduce more people to cryptocurrency that were previously unaware of it. This will likely lead to more investors that will continue to drive Bitcoin’s price up; it is currently valued at slightly over $4000.
Adoption of Bitcoin will allow more businesses to accept it as payment. Few websites currently accept Bitcoin as payment. The main ones being Overstock.com, Newegg, and expedia. The increased usage and adoption of Bitcoin will require them to address the current high transaction fees and slow transfer speeds. Perhaps further adoption is the push that Bitcoin needs to force it into optimizing their system. Otherwise, Bitcoin may face decreased value as investors move to alternative coins, also referred to as altcoins. No matter what, I think everyone can agree that Vietnam’s recognition of Bitcoin brings nothing but good for those in the cryptocurrency world.