Vietnam cryptocurrency use second highest in the world

Vietnam has the second-highest rate of in terms of cryptocurrency use among 74 surveyed economies, driven by remittance payments, a new report says.

The report on survey results released by Statista, a global provider of market and consumer data, says 21 percent of respondents in Vietnam said that they used or owned cryptocurrency in 2020, second after Nigeria (32 percent).

The Philippines ranked third at 20 percent, followed by Turkey and Peru, both at 16 percent, said the survey which covered 1,000-4,000 respondents per country.

The rest of the top 10 comprised Switzerland, China, the U.S., Germany and Japan.

For Vietnam and the Philippines, remittance payments play a role in the widespread use of cryptocurrency,” the report said.

The high cost of sending money across borders in conventional ways has caused many to turn to local cryptocurrency exchanges, catering to overseas workers and their families, it added.

However, cryptocurrency has not been recognized as a legitimate means of payment in Vietnam. The State Bank of Vietnam has warned that owning, trading and using cryptocurrency was risky and not protected by laws.

Earlier reports have noted that while the Vietnamese diaspora typically sent remittances to Vietnam to support their families, there has been a shift in recent years. Now, a significant portion of remittances is used as investments for doing business in the country.

Around 580,000 Vietnamese citizens work overseas now, up from 500,000 in 2010, according to the Department of Overseas Labor under the Ministry of Labor, Invalids, and Social Affairs.