With over 20 million Vietnamese owning digital assets and $120 billion in crypto investments flowing into Vietnam, the Vietnam Blockchain Association introduced the “From Global to Local” strategy and a sandbox model at the WOW Summit 2024 to attract international investment and promote blockchain adoption in daily life.
On November 12, 2024, Mr. Tran Huyen Dinh, Chairman of the Fintech Application Committee of the Vietnam Blockchain Association, attended the international WOW Summit 2024 in Bangkok, Thailand. With over 7,000 participants and 150 speakers from 30 countries, the event provided a platform for experts and businesses to exchange ideas and seek partnerships in Web3, AI, fintech, and blockchain.
During the panel discussion on “Innovating Cross-Border Payments Through Research and International Collaboration,” Mr. Dinh emphasized the importance of global regulatory compliance for the sustainable development of blockchain technology, especially as it and digital assets gain worldwide attention. He noted that tokenizing real-world assets (RWA) is a key strategy for applying blockchain in real life, laying the foundation for transparent and secure international transactions and payments.
According to the Chainalysis 2024 report, Vietnam ranks 5th globally in cryptocurrency adoption, with over 20 million Vietnamese owning digital assets, accounting for approximately 20% of the population. Crypto inflows to Vietnam in the past year reached $120 billion, equivalent to more than a quarter of the national GDP. Notably, over 85% of freelancers in Vietnam own digital assets, and 34% are willing to accept cryptocurrency payments, creating a promising foundation for digitalized fintech development.
To strengthen blockchain’s role in the economy, on October 22, 2024, the Prime Minister issued the National Blockchain Development Strategy, aiming to position Vietnam as a regional leader. Mr. Dinh highlighted that the Vietnam Blockchain Association is actively promoting collaboration and advocating for a regulatory sandbox model to enable businesses to test new technologies in a controlled environment before widespread implementation.
Globally, sandbox models have been thriving, with notable success seen in the program by the UK’s Financial Conduct Authority (FCA). This pioneering model has removed regulatory barriers and driven innovation in technology, involving over 700 companies and attracting more than $1.3 billion in investment into fintech and new technology enterprises. Vietnam could adopt this model to support domestic blockchain businesses in their development and global integration.
During the panel discussion, Mr. Dinh also introduced the “From Global to Local” strategy to attract international tourists and investors to Vietnam, encouraging the use of local payment services through stablecoins or cryptocurrencies. This strategy not only supports the local economy but also establishes Vietnam’s position in digitalized fintech. A prime example of blockchain’s potential in international payments is the agreement between Tether and Lugano, Switzerland, allowing Bitcoin, Tether (USDT), and LVGA tokens to become legal payment methods in Lugano since 2022
In addition, Mr. Dinh highlighted the importance of data sharing in combating money laundering (AML) and counter-terrorism financing (CFT). He introduced ChainTracer, an initiative by the Vietnam Blockchain Association to prevent fraud and enhance financial security. Since its launch in 2022, ChainTracer has helped recover over $2 million from fraud cases in Vietnam and provided more than 50 investigation reports.
Joining Mr. Dinh in the discussion, international experts shared diverse insights on fintech and blockchain. Mr. Justin Chan, Executive Vice President and Head of Business Development and Partnerships at the CFA Institute – a global non-profit organization operating in 160 countries and known for its prestigious Chartered Financial Analyst (CFA) designation – emphasized that stablecoins are a critical gateway for cross-border payments, unlocking new opportunities for the international financial sector.
Ms. Eowyn Chen, CEO of Trust Wallet, a leading cryptocurrency wallet with over 30 million active users supporting more than 160,000 digital assets, stressed the importance of security in digital asset transactions. She stated, “Bitcoin’s growth to its all-time high has encouraged more active user engagement in on-chain applications.”
Mr. Jason Brink, President of LFG Incorporated, which supports the development and marketing of decentralized Web3 projects, criticized the slow and restrictive regulations on digital assets in the U.S. He noted that these limitations are driving away many U.S. entrepreneurs to seek better opportunities in other countries.
The Vietnam Blockchain Association’s presence at WOW Summit 2024 not only reinforced Vietnam’s international position in blockchain but also opened up opportunities for collaboration, investment attraction, and blockchain application in daily life, supporting businesses and members to participate in global technology projects.
At WOW Summit 2024, Mr. Tran Huyen Dinh, on behalf of the Vietnam Blockchain Association, signed a Memorandum of Understanding (MOU) with WOW Summit Hong Kong. The agreement aims to enhance knowledge sharing, and experience exchange, and foster blockchain cooperation between Vietnam and the global community. This partnership underscores VBA’s role in connecting Vietnamese enterprises with international markets and creates opportunities for members and businesses to participate in global technology projects.