Stablecoins in Vietnam: Current situation and prospects
Stablecoins are becoming an increasingly hot topic within Vietnam’s financial and tech communities. Although not legally recognized as a means of payment, stablecoins have been quietly growing in popularity in investment as well as crypto. So, where do stablecoins currently stand in Vietnam’s digital finance landscape, and what does the future hold for them? 1. Legal status of stablecoins in Vietnam As of now, stablecoins are not recognized as a legal means of payment under Vietnamese law. The State Bank of Vietnam (SBV) has declared that the issuance, provision, and use of Bitcoin and similar virtual currencies — including stablecoins — as a form of payment is illegal and subject to administrative fines ranging from VND 150 to 200 million. Any form of payment using stablecoins — whether USDT, USDC, or other tokens — is strictly prohibited. However, while payment via stablecoins is banned, the government does not prohibit the holding or trading of cryptocurrencies as a form of digital asset. In recent years, the government has taken initial steps toward regulating the digital asset sector. For instance, the 2022 Anti-Money Laundering Law was the first to officially include virtual assets within its regulatory scope. Moreover, initiatives like Decision 1255/QĐ-TTg (2017) and the Ministry of Finance’s formation of a research group on cryptocurrency in 2020 show that the Vietnamese government is gradually moving toward establishing a legal framework for this emerging sector. 2. Stablecoin usage in Vietnam Despite the lack of a clear legal framework, Vietnamese users widely utilize stablecoins in investment and crypto-related activities, notably within these main groups: 3. Vietnamese businesses and startups involved in stablecoins Within Vietnam’s blockchain ecosystem, several businesses and projects are either developing or integrating stablecoin-related technologies: VNDC was among the first domestic stablecoin projects, pegging 1 VNDC = 1 VND and operating as a fiat-backed token on blockchain. Though not officially licensed, VNDC and the ONUS platform have attracted millions of users. Today, ONUS continues as a crypto investment platform, with VNDC coexisting alongside international stablecoins. International entities like Binance and Stably have launched VND-pegged stablecoins such as BVND and VNDS. However, these coins have yet to gain significant traction, due in part to low public trust and a lack of legal backing in Vietnam. A few small fintech firms have started using stablecoins for cross-border remittances, though end users still receive VND. Meanwhile, Vietnamese blockchain company TomoChain has collaborated on stablecoin/CBDC development for other countries such as Laos — highlighting Vietnam’s potential in both technology and talent for digital finance. 4. Future directions and outlook for Stablecoins in Vietnam So far, regulators have remained cautious and have not moved to legalize stablecoins. Instead, the State Bank of Vietnam is prioritizing research into launching a central bank digital currency (CBDC). This reflects the government’s interest in digital currency, but with a preference for state-issued and controlled solutions over privately developed stablecoins. Looking ahead, several developments are possible: At present, stablecoins in Vietnam remain in a legal gray area. While their use is thriving in the crypto community, the regulatory framework is still under construction. In the future, as the government continues to prioritize digital transformation and digital currency initiatives, stablecoins may be brought under a clearer legal structure — or be complemented, if not replaced, by a state-controlled CBDC. Key stakeholders — including the SBV, Ministry of Finance, and industry associations — are closely monitoring international developments to shape Vietnam’s policy on stablecoins.
2025 – The Year of Payment Stablecoins (PSC)
Payment stablecoins are transitioning from peer-to-peer transactions to mainstream B2B and B2C payment applications, driving significant changes in traditional payment systems—an area traditionally dominated by banks. According to Deloitte, 2025 is poised to be the year of payment stablecoins. 1. What is a Stablecoin? A stablecoin, as the name suggests, refers to a “stable” currency, meaning reliable, balanced, and secure. By pegging its value to fiat currency or gold, stablecoins maintain a stable price while leveraging blockchain’s decentralized nature, ensuring security and strict control. Payment Stablecoins (PSC) are a specific type of stablecoin designed for payment purposes. They have the potential to enhance payment systems, reduce transaction costs, and promote financial inclusion. However, if not properly managed, they could also pose systemic risks. 2. The Growth of Stablecoins PSC has seen rapid growth in recent years, with market capitalization reaching hundreds of billions of USD. These stablecoins are widely used in cryptocurrency transactions, cross-border payments, and decentralized finance (DeFi). 3. Regulations and Policies Governments worldwide are seeking to regulate PSC to ensure transparency and mitigate financial risks. Countries like the U.S., the EU, and Singapore have proposed new regulatory frameworks to oversee this market. In the U.S., PSC issuance has primarily been driven by non-bank entities and crypto companies. However, the competitive landscape is shifting as the U.S. moves toward a clear and consistent national regulatory framework for PSC issuance. Looking ahead to 2025, various factors are encouraging traditional financial institutions (non-crypto firms) to consider becoming PSC issuers. These factors include the increasing market capitalization and transaction volume of fiat-backed stablecoins, signals from the new administration, regulatory agencies, and legislative developments in Congress aimed at establishing PSC regulations. 4. Trends in 2025 5. The Potential of PSC PSC enables instant, low-cost payments, encouraging users to shift from traditional financial or payment systems to blockchain networks. Additionally, PSC mitigates the risks and volatility associated with non-fiat-backed cryptocurrencies (e.g., Bitcoin). With PSC market capitalization surpassing $200 billion, more businesses are developing platforms that facilitate PSC transactions. To date, PSC market capitalization and trading volume have primarily stemmed from cryptocurrency and digital asset transactions. PSC has provided a stable medium of exchange, particularly during periods of market volatility. However, its applications are expanding beyond digital asset trading. PSC is now used for remittances and payments unrelated to digital assets, offering a faster and more cost-effective alternative to traditional financial systems. In many cases, PSC is being adopted as an extension or substitute for fiat currency. For PSC to reach its full potential, further advancements are needed to overcome barriers in retail and commercial payments. This includes improving technological infrastructure and encouraging broader adoption by financial institutions, businesses, and consumers. By addressing these challenges, PSC can drive significant changes in global financial transactions, making them faster and more cost-efficient. 6. Risks of PSC While PSC offers numerous opportunities, it also comes with significant risks that issuers must navigate, particularly as they operate in both traditional financial regulatory environments and the crypto ecosystem. Despite these challenges, payment stablecoins continue to grow rapidly and hold the potential to become a crucial financial instrument in the global economy due to their widespread usability and low-cost transactions. 2025 could mark a significant turning point for PSC in terms of market capitalization, transaction volume, and regulatory developments. The market awaits new developments with anticipation. Source: Deloitte