VNDC has launched a Vietnamese-Dong pegged stablecoin that will be leveraged to fuel international transactions in Vietnam. The stablecoin ( VNDC 2.0 ) will be 100% backed by collateral held with Hong Kong-based regulated trustee, First Digital Trust. With Vietnam being an early adopter of digital assets, the stablecoin is expected to be a go-to solution for growing demand among businesses and investors.
Stablecoin Launch
VNDC, one of Vietnam’s prominent crypto exchanges and blockchain companies, has launched a new Vietnamese Dong pegged stablecoin called VNDC 2.0. The stablecoin is 100% backed by collateral overseen by Hong Kong-based regulated trustee, First Digital Trust. VNDC 2.0 ( VNDC ) will replace VNDC 1.0, which was a project that was established in 2019. Users who originally owned VNDC 1.0 tokens have the ability to swap them out for 2.0 tokens at no cost until December 31st, 2021.
The Goal Of VNDC 2.0
With VNDC being the first Vietnam Dong-backed stablecoin in Vietnam, the ultimate goal is to kickstart international business activity in Vietnam. VNDC was built on Ethereum and follows ERC20 and Binance Chain standards. The fast, low-cost, and borderless stablecoin plans to provide the following use cases to individuals and institutions:
- Payments
- Remittances
- Payroll
- Settlement
- Trading
- Decentralized applications
- Escrow services
- Lending
- Alternative banking
Tam Tran, the CEO of VNDC stated that:
“Vietnam has always been an early adopter of cryptocurrency and blockchain technologies and we are very excited to be the first exchange to bring a transparent VND stablecoin to the market to meet the growing demand of our digital asset communities as well as international investing during the global COVID-19 pandemic.”
Entering At The Right Time
Unlike most economies, Vietnam has done well managing the global pandemic in COVID-19. Vietnam is one of the few countries that has managed to ink positive economic growth this year. Leadership believes this puts VNDC in a perfect situation to boost cross-border business activities in the region. Due to current market conditions, VNDC is expected to attract foreign investment from the get-go. Ever since the earlier stages of COVID-19, stablecoins have been a go-to solution. Among global uncertainties, investors were de-risking out of volatile assets and moving into assets that were liquid and more stable. VNDC will be structured around these core features and will offer the proper framework to facilitate fast and seamless transactions.
Token Holder Process
Once individuals own the stablecoin, they can easily redeem VNDC for fiat or local currencies from any spot in the world through SWIFT wires. Additionally, token holders can swap out VNDC for VND in Vietnam through the VNDC website. VNDC will work alongside Stably to interconnect the existing financial world with the Blockchain.
Kory Hoang, the CEO, and Co-Founder of Stably added that:
“In addition to making trading crypto in Vietnam easier, the country already has a thriving digital asset community which will greatly benefit from a VND-pegged stablecoin that is transparent, trustworthy, frictionless and borderless. Stably is excited to work with the VNDC team to create new opportunities for Vietnamese businesses and individuals and anyone else looking for opportunities in Vietnam.”
The VNDC Wallet
Users of the stablecoin will have access to a multi-coin wallet that will make it easy to manage VNDC, ERC-20 tokens, and other digital assets such as Bitcoin, Ethereum, USDT, and more. The wallet is equipped with biometric authentication technology and already serves more than 200K users. Some of the top features the wallet offers include:
- Staking
- Ability to exchange assets
- Credit lines
- Ability to buy and sell various digital assets
- Crypto escrow
- E-voucher
- Affiliate programs
What Businesses Are Saying
As mentioned above, VNDC 1.0 launched ( 2019 ) locally in Vietnam. Individuals and institutions with the VNDC wallet were primarily leveraging the stablecoin for personal and other business-related tasks. An example would be Snack House, which is a Vietnamese fast-food chain that used VNDC 1.0 as a promotional tool. Customers of the fast-food chain could redeem VNDC in the form of rewards for various items they purchased. Mai Nguyen Huu Sang, the CEO of Snack House stated that:
“As a business owner, I feel completely secure and confident when using VNDC services to issue vouchers to customers at any of our locations.”
VNDC 2.0 To Build-Off 1.0
VNDC 1.0 gained local traction but lacked the proper infrastructure to scale due to the absence of trust laws in Vietnam. VNDC 2.0 will operate under a regulated trust framework based in Hong Kong. In doing so, 2.0 is expected to drive cross-border business activities in Vietnam via individuals and institutions. The company plans to list VNDC 2.0 on global exchanges and DeFi protocols later this year and into 2021. During its initial launch, VNDC 2.0 will be available on VNDC.io.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.
This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.