The central bank has said that the government does not recognize Bitcoin, citing similar rulings in other countries.
In a statement it issued February 27, the State Bank of Vietnam said Bitcoin and others of its ilk are not official currency or legal means of payment in Vietnam, and transactions using them would not be recognized or protected.
Neighboring countries like Thailand, China, Malaysia, and Indonesia and developed ones like Russia, France, and Norway have not legalized Bitcoin, it said.
Bitcoin was introduced as an open source software in 2009 by Satoshi Nakamoto, possibly a pseudonym for one or more programmers.
Transactions using Bitcoin have been done in a dozen countries in Europe and America and the money itself is considered an asset.
Mt.Gox in Tokyo, one of the two world's largest Bitcoin exchanges along with Bitstamp in the UK, collapsed February 18, saying that 850,000 Bitcoins worth US$473 million were lost or stolen in a hacking attack.
Bitstamp also suspended withdrawals in February for several days due to a distributed denial-of-service (DDOS) attack.
A Vietnamese central bank official in January also expressed the bank's objection against the use of Bitcoin, after private company Hiep Dong which owns parenting forum lamchame.com announced it would accept Bitcoin transactions.
It said it would accept the risks involved as a pioneer since the currency was set to become a global trend and an e-commerce mainstay.
Analysts said Bitcoin provides little guarantee as there is no central authority or bank to take responsibility for cryptography errors or provide protection in case of fraud.
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