Against the backdrop of a burgeoning crypto market, with over 20 million Vietnamese investors and a staggering US$120 billion in capital, the Vietnam Blockchain Association unveiled its "Global to Local" strategy at the WOW Summit 2024 in Bangkok.
According to the Chainalysis 2024 report, Vietnam is the fifth largest country in terms of crypto asset adoption, with over 20 million citizens owning cryptocurrencies. Furthermore, the nation witnessed a significant influx of crypto capital, estimated at $120 billion in the past year, equivalent to more than a quarter of its GDP.
Notably, more than 85 percent of freelancers in Vietnam own crypto assets and 34 percent are willing to accept payments in crypto assets, creating a potential foundation for the digital financial technology sector.
To bolster the role of blockchain technology in the economy, the Prime Minister issued the National Strategy on Blockchain Development on October 22, 2024, with the objective of establishing Vietnam as a regional leader in this field.
The Vietnam Blockchain Association is actively promoting collaboration and proposing the establishment of a controlled testing environment, or sandbox, to enable businesses to safely test and validate new technologies prior to their widespread deployment.
At the international WOW Summit 2024 held in Bangkok, Thailand, Mr. Tran Huyen Dinh, representing the Vietnam Blockchain Association, delivered a speech on the topic of Cross-Border Payment Innovation through International Research and Cooperation. He emphasized the critical importance of adhering to global legal frameworks to ensure the sustainable development of blockchain technology, particularly amid its growing global prominence and the increasing interest in crypto assets.
Digitizing real assets (RWA - Real World Assets) will be a strategy to bring blockchain into life applications, creating a foundation for transparent and secure international transactions and payments.
The strategy of transitioning from a global to a local focus aims to attract international tourists and investors to Vietnam by promoting the use of local payment services, including stablecoins and crypto assets. This approach not only bolsters the local economy but also reinforces Vietnam's standing in the realm of digital financial technology.
Furthermore, the significance of data sharing in the context of anti-money laundering (AML) and counter-terrorism financing (CFT) cannot be overstated. A notable example is ChainTracer, an initiative by the VBA designed to combat fraud and enhance financial security.
Since its inception in 2022, ChainTracer has successfully recovered over $2 million from cases of digital fraud in Vietnam and has generated more than 50 reports to assist investigative agencies, as highlighted by Mr. Tran Huyen Dinh. Globally, the sandbox model has gained substantial traction, with the Financial Conduct Authority (FCA) in the UK being recognized as a pioneering example that facilitates the removal of legal obstacles and fosters innovation within the technology sector.
Over 700 companies have engaged in the trial, securing over $1.3 billion in investments within the fintech and emerging technology sectors. This serves as a model for Vietnam to consider in order to foster the growth of domestic blockchain enterprises and facilitate their international integration.
At WOW Summit 2024, the Vietnam Blockchain Association (VBA) signed a Memorandum of Understanding (MOU) to cooperate with WOW Summit Hong Kong, to enhance knowledge and experience sharing and promote blockchain cooperation between Vietnam and the global technology community.
This collaboration not only reinforces VBA's role in linking Vietnamese businesses with the global market but also creates numerous opportunities for Vietnamese enterprises and their members to engage more profoundly in international technology initiatives. The upcoming international conference, WOW Summit 2024, will host over 7,000 attendees and feature 150 speakers from 30 different countries, providing a platform for experts and businesses to network and explore partnerships in the areas of Web3, AI, fintech, and blockchain.
The establishment of the Vietnam Blockchain Association not only elevates Vietnam's profile in the international blockchain community but also creates opportunities for networking, investment attraction, and the widespread adoption of blockchain technology. By supporting enterprises and members, the association facilitates their participation in global technology projects.
