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Being poised for tech explosion in finance
With the development of technology and online payments, especially during the recent pandemic, this may be the most flourishing time for personal investment channels.
Investors must keep on top of the latest developments in investment channels, as digitalisation pushes things further and faster
At a mid-July seminar hosted by Vietnam Investment Review, Exness representative Thai Viet Dung stressed that history shows humanity always reaching breakthrough achievements in technology.
“We have also seen the birth of new financial models that break old methods and update the latest technology trends,” Dung said. “Decentralisation in the financial industry and the creation of new structures and models that are more solid and energetic than those that have been successful before are accelerating.”
With the rush to accelerate the use of online payment over the past few years, new funding channels are opening up. Besides traditional channels such as real estate, securities, bonds, gold, and foreign currencies, the market has developed and perfected a variety of new investment corridors.
Dung added that new opportunities will always appear in the market, whether it is on an upward or downward trajectory. This is not a small challenge for businesses that are developing products related to the financial sector.
Similar to how the internet turned entire industries on their heads, blockchain has the potential to be the next big thing, Dung said. It is predicted that the technology will really take off in the next decade if it can be developed to a point where it is ready for commercial application, rewarding early investors’ faith 1,000 times over.
Most people immediately think of cryptocurrencies when they hear the word “blockchain.” But the blockchain is the underlying technology of cryptocurrencies, powering almost all of the digital assets available on the market while fostering decentralisation, high security, transparency, and peer-to-peer interactions.
Stanislav Bernukhov, a market analyst at multi-asset firm Exness, told VIR that the current economy is only now beginning to use blockchain technologies. “In addition to validating financial transactions and developing secure payment protocols, blockchain has various applications, including supply chains, project management, and government,” Bernukhov stated.
The market for blockchain technology is anticipated to have increased at a compound annual growth rate (CAGR) of 56.9 per cent, from $5.5 billion in 2021 to $8.61 billion this year. The companies stabilising their output after meeting the demand that increased rapidly during the pandemic last year is mostly the cause for the change in the growth trend.
At a CAGR of 54 per cent, the market is anticipated to reach over $48 billion by 2026, according to the Blockchain Technologies Global Market Report 2022, released by Reportlinker.com.
Le Van Duong, partner at Indochine Counsel, said that technology brings more chances for investors to choose new investment channels. However, he suggested that investors have to update their knowledge to protect themselves within the boundaries of Vietnamese law.
“It is well known that there are currently no laws or regulations in Vietnam that specifically address cryptocurrency. Guidelines for this field can be inferred from some currently in effect legal regulations, such as those on non-cash payments, as well as from a variety of legal instruments, including the prime minister’s orders and official letters or dispatches of the State Bank of Vietnam,” Duong noted.
Exness is one of the industry’s top brokerage firms, offering online trading services in cryptocurrencies such as but also in stocks, indices, commodities, and currency pairs.
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