Bitcoin, like most other cryptocurrencies, is a heavy burden on regulators and economists in developed countries. As a means of payment and a general monetary value not based on national fiat currencies, the concept has managed to radically change the way transactions, but also things like BTC investments, function around the world.
However, the concept of bitcoin is mostly something that is mostly associated with so-called “first world” countries or developed countries around the world. When it comes to developing countries and those that are still underdeveloped (apart from the digital currency remittance feature), many feel that the same countries are outside the cryptocurrency loop.
But this is not a fixed rule and there are many examples that show a different picture. Recently, the state of Vietnam entered the battle as one of those states with the desire to legalize and recognize BTC in the country. This could have a significant impact not only on the digital currency, but also on the same country and region of Southeast Asia.
Plan for Hanoi 2018
The news coming from Vietnam came from the highest office in the country – the Prime Minister. According to the statement, the country now has an approved plan for the formal recognition of bitcoin as a form of valid payment. The plan envisions that recognition will last until 2018, setting it in a time frame of about 18 months, depending on the interpretation of the completion date.
Prime Minister Nguyen Xuan Phuc of Vietnam has given the country’s central bank the task of creating a legal framework for it. The Vietnamese Ministry of Public Security and the Ministry of Finance should join the same process.
For now, it has been revealed that the first step in the process will be an intergovernmental assessment of how the same process should be approached. It must be completed before August 2018, after which a legalization framework will be created.
As the legalization document is being prepared, Vietnamese officials will have an additional task – to figure out the taxation of acripto currencies. Held along with legalization, the tax issue should be resolved by June 2019.
This means that by 2020, Vietnam plans to have both a legal system for the use of cryptocurrencies (at least BTC) and a way to tax the same ecosystem. Although ambitious, the plan is by no means impossible for a large Asian country.
At the same time, it signals a major shift in Vietnam’s approach to cryptocurrencies. In 2014, the government stated that consumers need to be aware of the risks associated with digital currencies. But at the same time, the central bank is clearly working on some sort of adoption plan. For now, the same plan seems to be fully on the move.
A difficult history
Of all the peoples of the world who fought for their independence from colonial power, few had such a terrible recent history as Vietnam. Formerly known as Indochina, it waged a bitter war in the 1950s to gain independence from France. But it was nowhere on the scale of what was to come in the form of a civil war that divided the country in half, contrasting north to north and south.
In a conflict that acted as a substitute for Cold War hostilities, the state of Vietnam ended up completely destroyed with millions dead, but also led to a clear victory for the communist North that united the country and became one of the most important regional players, albeit always from a less prominent role.
In the decades after the Vietnam War, the country fought to liberate Cambodia from the Khmer Rouge and against its neighboring neighbor China, all the while resulting in destruction and death for the country fighting. It could be argued that it was only after the late 1980s and the collapse of the Warsaw Pact that the semblance of peace descended on Vietnam.
Yet, as history has sometimes shown, difficulties and adversity can bring spectacular abilities for renewal and change. In the case of Vietnam, similar forces have operated over the past decades, and now, another country appears to be shooting for membership in the Asian club Tiger.
After complex geopolitical isolation and a lot of conflict, both large and small, the site began to turn to Vietnam in the early 21st century. It was then that the nation established diplomatic relations with every other country in the world and began an economic development program.
Since then, Vietnam has had one of the fastest growing economies in the world. This was partly due to the overall state of industrial and economic difficulties, where construction was easier due to the catastrophic growth that Vietnam had previously had.
The cycle of improvement and development continues, especially thanks to the country’s geography – it is basically surrounded by strong industrial production centers, mainly China, but also other countries in the Far East. Building toward the same goal seems like a logical option for any development Vietnam might seek.
However, the fact that Vietnam is preparing to make bitcoin the legal equivalent of any other fiat currency shows a different way of thinking. In this future Vietnam, the possibility of creating jobs and income related to digital currencies seems like a smart idea. Today, millions use bitcoin to gamble online , get loans, sell and buy things online, and do a lot more.
Reaching a position where Vietnam could use its intellectual potential instead of purely manual is a fantastic option for a regional state, not just for Hanoi. The same would better prepare Vietnam for a future in which production will be disrupted, just like most traditional industries.
Having bitcoin as a legal currency seems more than reasonable, especially since many countries in the wider region will continue to use digital currencies only through humanitarian programs . If Vietnam legalizes BTC on schedule, it is almost certain that it would greatly help it achieve a high level of growth in the next decade.