In the most recent example of government actions designed to capture tax revenue and clamp down on money-laundering activities, the State Bank of Vietnam is ready to issue new rules governing cash transactions.
From NZ Week:
For the first time, individuals will not be allowed to pay for securities, houses, land and large vehicles with cash. Organizations will not be allowed to use cash for transactions in real estate, securities, aircraft, ships and cars, or transactions exceeding the limit set by the central bank.
Vietnam joins Spain, France and Italy in enacting cash payment caps. Similar laws, such as in Venezuela, that govern reporting of credit card transactions made outside the country also represent attempts by revenue-strapped governments to reign in the underground economy.
The net result to the e-payment industry is far from clear since much of this effort is designed to ensnare transactions that probably wouldn’t show up in the average payment card portfolio. But cash has a larger and larger target on its back, something Mercator Advisory Group explored in more depth in our recent report Consumers and Cash: A Love Story. We expect to see more laws such as these enacted worldwide. If, at the same time, governments also focus on building out an electronic payment infrastructure, as is being done in Vietnam, then the global industry undoubtedly benefits.
Click here to read more from NZ Week.