Vietnam CBDC Tracker

Vietnam is currently in the pilot phase, according to reporting in Vietnam Plus.

CBDC History and Development

In 2021, Vietnam Plus reported that the prime minister endorsed a strategy that involved having the State Bank of Vietnam assigned to research “the pilot use of 'virtual money' based on blockchain technology in the next three years.”

Human Rights and Civil Liberties Concerns

Vietnam earned a 19 out of 100 in Freedom House’s 2023 Freedom in the World report. Problems within the country are widespread. However, the concerns most relevant to the issuance or use of a CBDC are the restrictions on opposition and association as well as the presence of persistent corruption. A CBDC could worsen both issues.

“A crackdown on both online and offline dissent raised concerns about a new wave of repression against civil society,” according to Amnesty International. In fact, although the constitution recognizes freedom of the press, Freedom House reported that “journalists and bloggers are constrained by numerous repressive laws and decrees” such as where the “criminal code prohibits speech that is critical of the government.” This treatment has also been extended to restrictions on freedom of association. Freedom House further reported that “Unregistered and unrecognized religious groups face routine harassment, including violence, criminal charges, and property damage” and “human rights organizations are generally banned, and those who engage in any advocacy that the authorities perceive as hostile risk imprisonment.” Unfortunately, a CBDC could be used as another tool in this effort. Across the world, governments have often turned to freezing and seizing the money of activists, political rivals, and protestors to undermine the opposition. A CBDC would make such initiatives easier by allowing governments to take direct control of each citizen’s finances.

Corruption also remains a major issue. There has been an effort in the government to crack down on this behavior, but Freedom House reports that “enforcement of anticorruption laws is often selective and linked to political rivalries. Many top officials who have been detained or jailed belonged to a different [political faction.]” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.