The Prime Minister has assigned the State Bank of Viet Nam (SBV) to study and propose policies on a national digital currency.

In addition, the SBV will issue a mechanism for controlled testing of financial technology (Fintech) activities in the banking sector in order to create a legal framework, meet management requirements, promote innovation and creativity, and deploy new co-operation and business models in payment service provision.

The Government officially approved the project to develop non-cash payments in Viet Nam for the 2021-25 period on Thursday.

The overall objective of the project is to create a positive change in non-cash payment in the economy with high growth, and to make the use of non-cash payment methods a habit of people in urban areas and gradually developing in rural and remote areas, and reduce the social costs associated with cash.

In the project, the Government has proposed many solutions, including completing the legal corridor and mechanisms and policies to develop non-cash payments in the 2021-25 period.

Specifically, the Government assigned SBV to co-ordinate with the Ministry of Justice and relevant ministries to review and propose amendments and supplements to a number of payment-related provisions in current legal documents.

Notably, the Government assigned SBV to complete the development and promulgation of a controlled trial mechanism for financial technology (Fintech) activities in the banking sector in order to create a legal framework to meet regulatory requirements, promote innovation, creativity and implementation of new business and co-operation models in payment service provision.

At the same time, the SBV must study and propose mechanisms and policies on national digital currency.

In addition, the Government assigned the Ministry of Information and Communications to co-ordinate with the Ministry of Justice, SBV and relevant ministries and agencies to review and propose amendments and supplements to legal regulations on electronic transactions, cyber security, ensuring safety, data security and user protection in order to support and facilitate the application of technology and innovation and creativity, ensuring security and safety in payment activities.

The Ministry of Finance will study solutions to continue to encourage non-cash payments to contribute to tax management. — VNS