#VNDC launched at the beginning of July 2019, advertised as a stablecoin 'pegged 1:1 with VND' and issued by VNDC Holding PTE. LTD. — a private company in Singapore. However, for Vietnamese users, VNDC is not legal tender and is not protected by the State Bank.
1. VNDC is not Vietnamese money
VNDC exists as a digital asset (crypto token), not a legal payment instrument.
If you use VNDC to pay for goods and services in Vietnam, you are not protected by law, and the state does not recognize this value.
2. Obvious risks
No real guarantee: Although the advertisement states '1 VNDC = 1 VND', recent reports suggest that the new VNDC 2.0 may not maintain a strict 1:1 peg anymore — the price could 'float' based on supply-demand or exchange rate fluctuations. The value of VNDC relies solely on liquidity and user trust. When liquidity is unstable, the price can plummet quickly.
Legal risk: Issuing and using stablecoins illegally may violate Vietnamese law.
Risk of fraud / losing peg: Forms of staking, saving VNDC with high interest rates carry the risk of capital loss if the peg assurance mechanism fails.
Lack of transparency: Average users find it difficult to verify the guarantee mechanism or liquidity pool.
3. Psychological effects
Strong marketing, promises of high returns (10–12%/year) can easily lead investors to FOMO, mistakenly believing VNDC is equivalent to VND.
Users lacking crypto knowledge may lose trust when the peg collapses or liquidity decreases significantly.
📌 Conclusion
VNDC is a high-risk stablecoin that cannot replace VND in payments or value storage. If you expect VNDC to be 'as safe as Vietnamese money' — that is an extremely dangerous notion.
👉 Investors should:
Understand that VNDC is a digital asset, not legal tender.
Do not consider VNDC as a legal payment instrument.
Understand the guarantee mechanism, peg, and liquidity pool before participating in staking or saving.
Always prepare for risk, only use capital you are willing to lose.
In summary: VNDC is not Vietnamese money. It is a high-risk crypto token, existing solely on trust and market liquidity — and Vietnamese users need to be extremely cautious.
