Vietnam’s Rise as a Cryptocurrency Hub: Positioning Itself as a Key Player in XRP
Crypto is experiencing global growth, but some regions, like South Asia, are still struggling to find their footing in the crypto market. In 2024, the cryptocurrency market in South Asia generated nearly US$343.50 million in revenue, according to recent research by Chainalysis. Vietnam, in particular, has emerged as the fastest-growing crypto region.
Vietnam ranked third in the 2023 Global Crypto Adoption report and has gained popularity in the crypto space. However, the use of virtual assets is illegal in Vietnam. The country’s laws prohibit the use of virtual currency, such as bitcoin, for financial transactions. Issuing and supplying illegal means of payment, including crypto, is considered a violation of regulations and can lead to liability under Article 206.
Despite the legal restrictions, XRP, the fourth-largest altcoin, is expected to make a big impact in Vietnam. Yasin Mobarak, a prominent figure in the XRP community, shared his insight on Twitter about the growing popularity of XRP in Vietnam. The Vietnam Central Bank has been exploring the possibility of using XRP for cross-border payments, both within Vietnam and internationally. The fast adoption of XRP in South Asian regions can be attributed to its faster, cheaper, and more secure cross-border payment services. Ripple, the company behind XRP, has recently partnered with TPB Bank, one of Vietnam’s largest banks, which will benefit the entire XRP ecosystem.
In terms of web traffic, centralized exchanges dominate in most countries. However, each country has its own unique interests. In the Philippines, for example, around 20% of people use crypto sites for gaming and gambling purposes. On the other hand, citizens of Vietnam and Pakistan prefer peer-to-peer exchanges, where they can directly trade with other individuals rather than relying on large firms.
Overall, the crypto market in South Asia, especially in Vietnam, is experiencing significant growth. Despite legal restrictions, XRP is poised to make a big impact in Vietnam, thanks to its faster and more secure cross-border payment services. The partnership between Ripple and TPB Bank will further enhance the XRP ecosystem. Different countries have their own preferences when it comes to web traffic, with the Philippines leaning towards crypto gaming and gambling, while Vietnam and Pakistan prefer peer-to-peer exchanges.