The rapid ascent of Vietnam’s economy has a profound impact on various sectors, including the blockchain industry. Notably, Vietnam secured the top spot in the 2022 Cryptocurrency Adoption Ranking, as reported by Chainalysis. The emergence of Vietnam as a dominant global crypto hub can be attributed to several key factors. Alongside its impressive economic potential, exemplified by an expected 6.5% GDP growth in 2023, Vietnamese citizens, particularly the younger generation, demonstrate remarkable technical and financial literacy. Until recently, access to both traditional banking services and investment opportunities within the global financial system was limited for ordinary Vietnamese individuals. According to the National Payments Corporation of Vietnam (Napas), only around 60% of Vietnamese adults possessed a bank account. However, the demand for financial services in Vietnam is substantial, given the substantial number of individuals who work abroad and send remittances back home to support their families and relatives.
Consequently, it is unsurprising that cryptocurrencies, offering alternative investment channels and efficient payment solutions, swiftly gained popularity in Vietnam. Cryptocurrencies enable residents to execute fast and cost-effective cross-border transactions while providing an affordable entry point for investment with fewer traditional banking obstacles. They serve as both a means for global money transfers and an option for diversifying investment portfolios, all without the conventional barriers imposed by the traditional banking system.
The demand for blockchain services catering to cryptocurrencies, coupled with the need for a user-friendly interface, has fueled the proliferation of blockchain systems in Vietnam. These blockchain ecosystems represent a convergence of the new cryptocurrency realm and the traditional financial sector, acting as a bridge between innovation and established financial practices with a unified entry point.
Vietnam’s interest in comprehensive blockchain ecosystems is evident from the statistics. For instance, the number of active users on the CrossFi blockchain, which facilitates various near-financial and payment decentralized services, grew from a mere couple of thousand users a year ago to 5,000 users currently. With the current growth trajectory, it is expected to further expand three to sixfold in the coming years.
The remarkable growth of CrossFi’s user base can be attributed to its inclusion of numerous banking and payment services that cater to both traditional finance and cryptocurrencies. This approach targets both individuals and the rapidly growing segment of crypto-utilizing businesses in Vietnam. CrossFi’s payment solutions include:
- transfer service enabling transactions, including cross-border ones, without reliance on Western financial institutions and their associated systems and protocols.
- solution for token issuance at private, corporate, and government levels, encompassing cryptocurrencies, stablecoins, and digital twins.
- solution for tokenized banking services and loyalty programs, ranging from football clubs issuing NFTs for their players to gas stations accepting cryptocurrency payments and issuing payment cards that integrate with fuel loyalty programs.
- fully integrated acquiring solutions utilizing payment cards, POS-terminals, and self-service terminals.
- crypto-acquiring platform offering ready-made solutions for enterprises and businesses.
- electronic payment instruments, along with ATM network processing, trading terminals, and e-commerce.
These solutions will soon be amalgamated into a single banking application, Finance, scheduled for launch in August. This application will enable users to perform cross-border transfers, conduct rapid exchange operations, and seamlessly buy and sell cryptocurrency for fiat currencies in a matter of seconds. Notably, the application has already attained a PCI DSS compliance certificate, indicating robust software security systems.
Similar to other functional blockchains, CrossFi relies on active users who are rewarded for their participation. While the Bitcoin blockchain relies on high-performance hardware miners, the CrossFi blockchain operates on the Tendermint Core architecture with a transaction speed of up to 1 million operations per second, requiring stakers—owners of the native MPX token. Staking involves holding funds in a cryptocurrency wallet to support all operations on the blockchain. Like miners in the Bitcoin network, stakers also receive rewards. Recent statistics indicate that MPX stakers have enjoyed approximately 8% monthly profitability. The CrossFi blockchain utilizes two native tokens: MPX and XFI. MPX serves as a stable unit of computing power on the CrossFi blockchain, facilitating transaction fee payments and the creation of new XFI coins. On the other hand, XFI represents a volatile settlement unit that is used in all services and is traded on crypto exchanges. This dual-token model ensures a sustainable and efficient economy within the CrossFi ecosystem of products.
Vietnam stands out amidst the broader South Asian landscape with its flourishing culture of technology start-ups that prioritize innovation and entrepreneurship. Naturally, this cultural inclination has extended to the blockchain industry, giving rise to numerous blockchain projects and initiatives like CrossFi, which have rapidly captured the attention of Vietnamese users.