The State Bank of Vietnam expects credit growth to drive liquidity into the cryptocurrency market

ChainCatcher news, according to a report by Cointelegraph citing Reuters, the State Bank of Vietnam (Vietnam's central bank) expects the credit growth rate to reach around 20% by 2025. With the increasing adoption of cryptocurrencies in the region, this move could lead to liquidity flowing into the global cryptocurrency market.

Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam, stated on Friday that further interest rate cuts are needed to promote economic growth and alleviate uncertainties brought about by U.S. tariffs. As part of a broader regulatory measure for technology, the Vietnamese government legalized cryptocurrencies in June, categorizing them into virtual assets representing tokenized products in the real world and crypto assets like Bitcoin and Ethereum. However, under the new cryptocurrency regulatory framework and its 5-year sandbox pilot program launched in September, the government prohibits the issuance of on-chain fiat-backed assets, including stablecoins and securities.