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Frozen Funds & Digital ID: Vietnam’s Banking Shockwave

21 Oct 2025

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This report covers the State Bank of Vietnam’s (SBV) decision to freeze or deactivate nearly 86 million bank accounts over new biometric verification rules. The move is part of Project 06, Vietnam’s push toward a cashless society and unified digital ID system by 2030, framed as a fraud-prevention effort.However, critics — especially Bitcoin advocates — warn this is an example of state overreach and the risks of centralized financial control, highlighting why permissionless systems like Bitcoin matter. While officials claim the action mainly affected dormant or fraudulent accounts, the strict in-person verification has caused serious difficulties for the elderly and foreign residents. Questions also remain about the fate of the funds in these frozen accounts, sparking global concern.

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