Da Nang is testing a new project: allowing international visitors to pay with USDT (a type of stablecoin pegged to the USD). However, local businesses will not hold USDT but will receive converted money in VND through an intermediary system.
☘️ Operating model
• Project awaiting approval: The dossier has been received by the Department of Science & Technology and sent to various departments for assessment. This is just the first step before being tested in a 'sandbox' environment.
• Objective: To create a new payment method, convenient for international customers, while still complying with Vietnamese law – meaning businesses still receive VND and do not hold crypto.
• Legal mechanism: The project is in the form of a 'controlled pilot', permitted to be implemented through a sandbox according to Resolution 136/2024/QH15. Approval steps are similar to applying for a business license, taking about 2.5 months.
• In line with the larger strategy: The project is part of the national blockchain strategic orientation (applicable from 10/2024) and drafts for digital asset laws. This is also a model for testing city-level stablecoins – a pioneering form domestically.
☘️ Big vision
• Not just for fun: This is part of the plan to turn Da Nang into the 'digital asset hub' of the region, in the spirit of the Danang Fintech Summit 2025, an event co-organized by DSA and Binance.
• Current leverage: Young population, stable digital infrastructure, government ready to embrace new technologies. Da Nang is leveraging this advantage to attract investment from the fintech and blockchain sectors.
• Learning lessons from Dubai: If a sufficiently open legal corridor can be established, Da Nang hopes to become the 'Dubai of Southeast Asia' in the field of digital assets.
⚠️ Risks and Challenges
• Legal framework is unclear: There is still no clear definition of digital assets, stablecoins, or specific KYC/AML standards – issues that experts (RMIT, conference speakers) continuously emphasize.
• Risk of being 'tightened' by law: If the law tightens too quickly or too strictly, the model may become stalled, losing momentum for innovation and making it difficult to attract international investment.
🍀 In summary
1. The project allowing international customers to use USDT for payments in Da Nang has been approved in the internal sandbox, awaiting trial implementation.
2. The intermediary model helps ensure legality – USDT is converted to VND for the seller.
3. This is a strategic move to put Da Nang on the map of regional digital assets, provided that a sufficiently tight but open legal framework can be established.