According to Tiger Research, Vietnam is seeing rapid growth in stablecoin usage, creating a parallel financial system outside traditional banking channels.
Market Growth of Stablecoins Amid Regulatory Absence
In Vietnam, there is active use of stablecoins despite the lack of a clear regulatory framework. Users find ways to trade and exchange stablecoins through unofficial channels.
Using P2P services like Binance and exchanges via Telegram, Vietnamese individuals navigate economic transactions. However, the absence of regulation creates risks and undermines market stability.
Stablecoins in Vietnamese Daily Life
In Vietnam, stablecoins serve several functions:
* Liquidity management – users hold funds in stablecoins as reserves for future trading. * Cross-border transfers – around 7.8% of all international remittances come into the country in the form of stablecoins. * Value storage – stablecoins are becoming a popular alternative to physical gold and dollars in times of high inflation.
The Future of Stablecoin Regulation in Vietnam
Despite the active use of stablecoins, Vietnam remains stagnant in developing legal frameworks. The government recognizes the importance of the crypto industry, yet clear steps towards implementing stablecoin legislation have not yet been taken.
Comparisons with neighboring countries highlight the need for regulations that meet user demands. This could help Vietnam become a leader in digital finance in Southeast Asia.
The use of stablecoins in Vietnam has been a natural response to current financial realities where the formal system fails to meet user needs. Developing targeted regulatory mechanisms could improve financial stability and create a safer ecosystem.
