RECENTLY THE US COMMERCE DEPT REFUSED TO RECOGNIZE VIETNAM AS A “MARKET ECONOMY”. THIS ARTICLE FROM A VIETNAMESE NEWSPAPER REVEALS THE REASONS BEHIND THIS STATUS
“The US Department of Commerce’s decision to continue classifying Vietnam as a non-market economy was disappointing news. However, this gives Vietnam the chance to accelerate reform towards a market economy.”
“This is the driving force for theMinistry of Industry and Trade (MOIT) to implement the commitment that it will research and analyze the US Department of Commerce’s (DOC) report about Vietnam’s economy, to supplement andcomplete argumentsbefore submitting dossiers to DOC on granting market economy status, a step to concretize the Vietnam-US comprehensive strategic partnership.”
“After doi moi (renovation), Vietnam has been consistent in carrying out a reform to turn the single-sectoral economy into multi-sectoral economy.The economy has been liberated from the state’s strict and rigid control, while people have freedom to trade and do business.
In addition, Vietnam has signed 16 new-generation FTAs (free trade agreements), becoming one of the most open economies in the world.”
“Thanks to economic reform, Vietnam has become an example in hunger elimination and poverty reduction, with the hunger and poverty rate falling from nearly 60 percent in early 1990s to 3 percent now. Private domestic invested enterprises with official registrations have been growing steadfastly. ”
“Vietnam has finished the underdevelopment period, becoming an average income country with a dynamic market economy which is integrating deeply into the global economy.”
“There is no doubt that the reforms and considerable progress in recent years are why 73 economies have recognized Vietnam as a market economy.”
“Economic Freedom of the World Index by Canadian Frazer Institute released late last year showed thatVietnam ranked 106th among 165 countries and territories. The position represented a four-grade promotion compared with the year before, a relatively big improvement compared with other regional countries.”
“After 40 years of doi moi, Vietnam’s economy is still undergoing the transition with some shortcomings as follows:
1. First, the pricing mechanism of some products, such as petroleum, electricity, airfare and healthcare services still bears administrative intervention.
2. Second, the protection of ownership and property rights still cannot be carried out thoroughly. In some places, land is recovered by the state at non-market prices.
3. Third, the state-owned economic sector still accounts for a large proportion of the national economy.
“A report of the World Bank shows that the state still participates in many economic activities through SOEs, while the land and capital allocation bear the impact of administrative commands rather than market conditions.”
Costa Rica recognizes Vietnam as market economy
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Source:Vietnam Net
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INDIA’s CENTRAL BANK: the impact of tokenized deposits, CBDC on deposit insurance
Yesterday during a speech, Reserve Bank of India (RBI) Deputy Governor MD Patra discussed how tokenized deposits and central bank digital currency (CBDC) might impact deposit insurance.
Tokenized deposits are a digital version of bank deposits using blockchain infrastructure to process programmable payments 24/7.In a digital world, they compete with stablecoins and CBDCs, although the design is quite different.
From a deposit insurance perspective, most tokenized deposit infrastructures aim to maintain the same deposit insurance coverageas a conventional bank deposit. However, Mr Patra noted that tokenization potentially can amplify bank runs in times of stress.
Hence, the risks posed by tokenized deposits need to be modelled to determine the insurance fund size and premium rates.
If there’s a bank failure, compensating clients might be less straightforward.“With different banks using different technologies there’s also the possibility that tokenised deposits could be held by depositors who are not KYC compliant and not clients of issuing banks,” said Mar Patra. “Consequently, verification of the authenticity and genuineness of claims may prove to be a testing challenge.”
Like the United States,India has a recent history of failing banks.In 2020 YES Bank started experiencing a run and the central bank took it over for a while. It restructured the bank with several other Indian banks taking equity stakes. Subsequently,YES Bank raised additional capital and is still operational today.
CBDC impact on deposit insurance
In an economy with a retail CBDC, if a bank fails, those with uninsured deposits will quickly try to transfer the money elsewhere.
The advantage of a CBDC its low risk because it is the liability of the central bank. On the one hand, depositors could just transfer the money to another commercial bank. Alternatively, they could switch to a CBDC.
Hence, the Deputy Governor observed that “particularly uninsured deposits, (would be) more prone to withdrawal and hence the risk of bank runs. Given the inherent links between such systems and the objectives and operations of deposit insurers,it is expected that the topic of CBDC will continue to grow in relevance for deposit insurers.”
In other words,if CBDCs encourage bank runs, that makes a bank more likely to fail and hence there’s a higher probability of drawing down the insurance fund.
“The impact of CBDC on deposits and hence deposit insurance is largely unknown as of today,”said Mr Patra. “The operating models and design features of each individual jurisdiction’s CBDC will be a crucial factor in expanding our understanding of the balance of risks.”
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Source:Ledger Insights
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Canada needs to overhaul crypto regulations — Coinbase exec
The Canadian government has previously come under fire for undermining the economic freedom of its citizens and freezing crypto donations.
Coinbase country director for Canada Lucas Matheson took the stage at the Blockchain Futurist Conference on Aug. 13 to discuss the state of Canadian digital asset regulation and promote the newly expanded Stand With Crypto initiative.
Matheson argued that although Canada’s regulatory framework is already robust,the country still needs to modernize crypto regulation.
The director noted that85% of countries will be adopting comprehensive regulatory frameworks for digital assets over the next year and urged the importance of public dialogue in educating public officials about the importance of cryptocurrencies. Coinbase’s Canadian director summed up the long-term goal for Stand With Crypto’s advocacy:
“Canada frankly has a lot of work to do to change laws, and the goal is to change laws in Canada so that we can increase economic freedom and update the financial system in Canada.”
Matheson concluded his presentation bydirecting audience members to sign up for the advocacy group.
Coinbase launches Stand With Crypto in Canada
Coinbase launched the Stand With Crypto initiative in Canada in July of 2024, following the success of the political advocacy group in the United States.
When the advocacy group launched, Matheson said thatCanadian regulators tended to be much more cooperative with the industry than American regulators but noted that input from elected politicians was lacking.
Binancecited changes in stablecoin policy and investor limits outlined in the 2023 regulation as the main drivers for the company’s exit from the country.
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Source:Coin Telegraph
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BRICS should focus on creating seamless economic environment — Indian expert
Apart from economic integration, BRICS should also address “critical global challenges with a collaborative and proactive approach,” Vice Chairman of BRICS Chamber of Commerce and Industry Sameep Shastri said
NEW DELHI, August 14. /TASS/.BRICS nations should focus on creating a seamless economic environment to expand trade, industrial and investment cooperation,Vice Chairman of BRICS Chamber of Commerce and Industry Sameep Shastri told TASS whencommenting on the upcoming meeting of BRICS industry ministers in Russia’s Nizhny Novgorod on August 16.
“The BRICS ministerial meeting is an invaluable opportunity to strengthen the bonds between our member nations further and address key global challenges with a unified approach,”he said.“We must focus on creating a seamless economic environmentthat fosters growth and innovation.
This might involve harmonizing trade policies, facilitating cross-border investments, and addressing any trade imbalances that may exist,” Shastri added.
Technological disparities among BRICS nations can hinder collaborative progress,the expert noted. “The meeting should address ways to bridge these gaps through joint research initiatives, technology transfer, and innovation partnerships.
Prioritizing advancements in fields such as artificial intelligence, cybersecurity, and clean technologies will be critical,” he said.
Apart from economic integration,BRICS should also address “critical global challenges with a collaborative and proactive approach,” the expert said.“BRICS needs to lead by example in setting ambitious sustainability targets and implementing actionable plans.
The meeting should also focus on strengthening global health systems ensuring that we are better prepared for future public health crises,” he said.
Shastri believes that peace and security should be central to BRICS discussions. “With rising geopolitical tensions and the persistent threat of terrorism, BRICS must work collaboratively to develop strategies that promote global stability.
This includes enhancing counterterrorism efforts, supporting peacekeeping missions, and fostering diplomatic dialogue to resolve conflicts,” he stressed.
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Source:TASS
