Vietnam proposes digital assets as collateral for SME bank loans
- Vietnam’s Ministry of Finance has proposed allowing small and medium-sized enterprises (SMEs) to use digital assets, virtual assets, and intellectual property as collateral for bank loans.
- SMEs represent over 98% of all businesses in Vietnam but account for only about 20% of total bank credit.
- The draft law aims to address the credit access gap by allowing loans secured against future-formed and intangible assets.
- Incentives for green businesses are included, offering preferential access to credit guarantees and support for energy-saving projects.
- Vietnam ranks fourth in the Global Crypto Adoption Index, indicating a growing interest in cryptocurrency markets.
This proposal marks a significant policy shift aimed at improving financial inclusivity for SMEs, which have historically struggled with limited access to credit due to inadequate collateral options.
If implemented, this could enhance loan accessibility for thousands of startups currently excluded from formal lending systems, potentially transforming the economic landscape in Vietnam.(Source)
