Blockchain – The bridge to global financial integration.

The market value of blockchain services in the finance and banking sector is expected to reach $175 billion by 2025 and $3 trillion by 2030, as actively adopted by major corporations such as Amazon Web Services, Microsoft, IBM, Intel, JP Morgan, PwC, and Deloitte. This forecast was cited by Mr. Phan Hồng Quân, Head of Membership at the Vietnam Blockchain Association, based on a report from Gartner, and shared during the 2024 Vietnam Retail Banking Forum.

Mr. Phan Hồng Quân, Head of Membership at the Vietnam Blockchain Association, emphasized that blockchain is emerging as a key technology for global financial integration.
Mr. Phan Hồng Quân, Head of Membership at the Vietnam Blockchain Association, emphasized that blockchain is emerging as a key technology for global financial integration.

Founded in 2008 by programmer Satoshi Nakamoto, blockchain was first introduced as the system behind Bitcoin—the highest-valued cryptocurrency today. Blockchain is considered a breakthrough solution for the traditional financial system, which is facing challenges such as slow processing speeds, high costs, lack of transparency, and vulnerability to manipulation.

This technology allows data to be stored in blocks, creating a decentralized, transparent, secure, and more efficient system. Mr. Phan Quân highlighted the success of Ripple, a Fintech company utilizing blockchain for cross-border payments, which can process millions of transactions per second at a lower cost compared to traditional banking systems.

Another example of blockchain’s potential is Circle, the issuer of the USDC stablecoin, which is pegged to the U.S. dollar, showcasing the ability to create a stable digital currency system. Additionally, Chainalysis, a firm specializing in blockchain data analysis, has supported the FBI and governments in investigating financial crimes, helping recover $30 million of the $635 million stolen in the Axie Infinity hack.

According to an IBM report, by 2020, 66% of banks across 16 countries had begun implementing blockchain technology. Furthermore, Gartner forecasts that the market value of blockchain services in the finance and banking sector will reach $175 billion by 2025 and $3 trillion by 2030. Major corporations such as Amazon Web Services, Microsoft, IBM, Intel, JP Morgan, PwC, and Deloitte are actively incorporating blockchain into their operations.

As for Vietnam, banks like Techcombank, HDBank, and TPBank have started using blockchain technology for international Letter of Credit (L/C) transactions. Additionally, HDBank has partnered with Galaxy Fintech to develop digital banking services. However, the regulatory framework for digital assets remains incomplete. Mr. Phan Quân emphasized that the government needs to implement clear regulations soon to foster the development of this technology, helping Vietnam stay competitive with advanced countries worldwide.

Many leaders and experts in the finance and banking sector gathered to discuss topics such as the digital economy, digital transformation, sustainable development, and Fintech at the 2024 Vietnam Retail Banking Forum.
Many leaders and experts in the finance and banking sector gathered to discuss topics such as the digital economy, digital transformation, sustainable development, and Fintech at the 2024 Vietnam Retail Banking Forum.

The 2024 Vietnam Retail Banking Forum was organized by the University of Economics and Law (UEL), Vietnam National University Ho Chi Minh City (VNU-HCM), in collaboration with the International Data Group (IDG) Vietnam, and under the sponsorship of the People’s Committee of Ho Chi Minh City. The event attracted a wide range of leaders and experts from the finance and banking sector, focusing on discussions around key topics such as the digital economy, digital transformation, data security, green credit, sustainable development, and Fintech.