Vietnamese PM Approves Plan to Authorize Bitcoin As Form of Payment
What is the meaning of bit coin?
Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country's central bank or government. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
How a Bitcoin is made?
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
How old is Bitcoin?
Bitcoin is 8.36 years old.
The software has been running and the blockchain has been growing since January 3, 2009 at 2:15PM EST, when the genesis block was created. The paper, Bitcoin: A Peer-to-Peer Electronic Cash System, was published on October 31, 2008 at 2:10PM EST.
What is mining in Blockchain?
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Is the Bitcoin legal?
Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators, all of which are trying to understand how the cryptocurrency fits into existing frameworks. The legality of your bitcoin activities will depend on who you are, where you live, and what you are doing with it
What is block chain technology?
What is a 'Blockchain' A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as 'completed' blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.
LETS COME TO THE NEWS
Vietnamese Prime Minister Nguyen Xuan Phuc has reportedly authorized a plan that could lead to the official recognition of digital currencies like Bitcoin as a form of payment in the country by 2018.
Vietnamese officials are mandated to work on a taxation system for digital currencies. The system, which will determine how virtual currency users in the country will be taxed, is due for implementation in June 2019.
Moreover, proposals on how to prevent and handle violations concerning the use of cryptocurrencies should be submitted for approval by September of the same year.
The plan also calls for the amendment of the 2015 Civil Code’s property rights provisions to include rules aimed at safeguarding Vietnam’s property rights. The amendment is expected to improve the protection of the rights and interests of both domestic and foreign investors.
The latest moves by the Vietnamese government to embrace digital currencies are a complete turnaround from the cautious viewpoint it expressed in 2014.
During that time, the country’s central bank has strongly warned consumers against the use of the cryptocurrencies. It reiterated that users would have no protection if they suffer investment losses. The bank has also prohibited credit institutions from offering any services related to virtual currencies.