Surprise about cryptocurrency adoption and transactions of Vietnamese people. Opportunities or challenges for fintech in Vietnam?

Vietnam is in the top 5 countries with the largest trading volume on the world's largest cryptocurrency exchange, Binance.

Furthermore, Vietnam was rated first in the world in 2022 with a flawless score in cryptocurrency adoption. Is this a positive indicator for the fintech industry in general, and for cross-border cryptocurrency transactions in Vietnam in the future? Let’s find out with FinFan in this article.

Vietnam is in the top 5 countries in cryptocurrency trading.

According to the newest statistic from an American newspaper Wall Street Journal, Vietnamese investors in May traded about 20 billion USD on Binance, and the form of "future contract" accounted for 90%. This number comes close to 5% of the total global trading volume on Binance.

Nikkei Asia (Japan) previously cited a report by Blockchain Chainalysis that during the period from July 2021 to June 2022, the Vietnamese market recorded 112.6 billion USD of cryptocurrency traded and ranked second in the table of Southeast Asia ranking. Thailand ranked first with 135.9 billion USD, while Singapore ranked third with 100.3 billion USD.

Vietnam is on top of cryptocurrency adoption in the world.

The other number showing well attitude with these created by blockchain technology coins of Vietnamese people is according to the Global Cryptocurrency Acceptance Index (GCAI) Report 2022 by Chainalysis Research Company (USA), Vietnam topped the rankings with a perfect score. This is the second year in a row Vietnam topped the list.

Opportunities or challenges for fintech in Vietnam?

Opportunities for fintech in Vietnam

These above numbers show us the huge interest of Vietnamese people in this new currency and the potential to develop some new fintech services related to it (especially remittance, payment, etc.).

This development will make cross-border money transfers faster and less expensive.

Another opportunity for fintech companies in Vietnam is that the Department of Economics and blockchain-related organizations in Vietnam are supporting these new currencies, forms of payment, and cross-border transfers, and they are also recommending to the relevant Ministries to develop laws to support the above issue.

Challenges for fintech companies in Vietnam

However, currently, in Vietnam, there are no specific regulations on accepting payments and transferring money in cryptocurrencies from a competent state agency, and the Vietnamese government only accepts a single currency in circulation, which is the Vietnamese Dong.

Furthermore, a lot of scam projects have been developed nowadays that take advantage of these legal gaps for personal gain and construct ghost projects to fool credulous and unwary investors.

Solutions to develop a sustainable cryptocurrency market in Vietnam for fintech companies.

In addition to waiting for recognition and new government laws for collecting payments and transferring money in cryptocurrencies, fintech companies must consider new ways to collaborate with industry partners. and abroad to build a mutually beneficial ecosystem and bring blockchain currency closer to the Vietnamese people.

Some effective methods of cooperation:

• Teamed up with a foreign partner to encourage the conversion of cryptocurrencies into fiat money that is accepted by the Vietnamese government (like the cooperation between FinFan and TripleA)
• Coordinate with foreign countries and propose to the Vietnamese government to create a CBDC under the management of the state bank instead of exchanging through a number of stablecoins available on the market.
• Coordinate with cybersecurity parties and immediately report to the competent authorities if detecting scam projects that harm investment participants in Vietnam.