The State Bank of Vietnam (SBV) has deactivated over 86 million bank accounts.

Overview

1. Vietnam's State Bank of Vietnam (SBV) has initiated a significant "data-cleansing" effort, deactivating over 86 million bank accounts as part of a national push for biometric verification.
2. This initiative stems from Project 06, a government project launched in 2022 to develop a unified digital identity system, with a goal of full implementation by 2025 and a vision extending to 2030.
3. The goal is to create a cashless society, reduce fraud, and align with international standards, such as those established by the OECD and the BIS (Bank for International Settlements).
4. With a population of approximately 101 million, Vietnam had roughly 200 million bank accounts before this, many of which were inactive, duplicate, or used for scams, resulting in around 113 million personal and 711,000 organisational accounts remaining active after verification.

Here’s a clear summary and analysis of Vietnam’s central banking and digital identity initiative, based on your points:

Massive Bank Account Deactivation for Biometric Verification

• The State Bank of Vietnam (SBV) has deactivated over 86 million bank accounts.
• This is part of a national “data-cleansing” campaign to ensure that all active bank accounts are linked to verified, biometrically authenticated identities.

Project 06: Unified Digital Identity System

• The effort is driven by Project 06, a government initiative launched in 2022.
• Goals:
• Develop a unified digital identity system for all citizens.
• Achieve full implementation by 2025, with a long-term vision to 2030.
• Integrate digital identity into public services, banking, and daily transactions.

Aims: Cashless Society, Fraud Reduction, Global Standards

• Cashless Society: Encourage digital payments and reduce reliance on cash.
• Fraud Reduction: Eliminate duplicate, inactive, or fraudulent accounts, which are often used for scams or money laundering.
• International Alignment: The project aligns with standards from organisations like the OECD and the Bank for International Settlements (BIS), aiming to modernise Vietnam’s financial system and improve global interoperability.

Scale and Impact

• Population: ~101 million people.
• Bank Accounts Before: ~200 million (indicating many people had multiple accounts, or there were many inactive/duplicate accounts).
• After Verification:
• 113 million personal accounts remain active.
• 711,000 organisational accounts remain active.
• This means a significant portion of accounts were either inactive, duplicates, or linked to unverifiable identities.

Implications & Analysis

• For Individuals: Citizens must now verify their identity biometrically (e.g., fingerprint, facial recognition) to maintain access to banking services.
• For Banks: Financial institutions must upgrade their systems to support biometric verification and comply with stricter KYC (Know Your Customer) requirements.
• For Compliance: This move is expected to reduce financial crime, improve regulatory compliance, and foster trust in digital banking.
• For the Economy: By pushing for a cashless society, Vietnam is positioning itself for greater digital transformation and financial inclusion.

Timeline and Implementation

1. Background (2022–2024): Project 06 began integrating population data, ID cards, and electronic authentication. In late December 2024, the SBV issued orders requiring biometric updates for all accounts.
2. January 1, 2025: Unverified accounts faced transaction restrictions (e.g., no online, QR, or digital payments).
3. July 1, 2025: Corporate accounts required legal representatives to verify biometrics, or services were suspended. A new "Decree on Regulations for Electronic Identification and Authentication" took effect, mandating facial scans or fingerprints for logins and transfers over 10 million VND (~$379 USD).
4. September 1, 2025: Full deactivation began for non-compliant or long-frozen accounts. By mid-September, reports confirmed ~86 million accounts were closed or suspended. This wasn't entirely "overnight" or without warning—announcements started in June 2025 during "Cashless Day" events—but the enforcement felt abrupt to many, with no extended grace period beyond the initial deadlines.
5. Pham Anh Tuan, SBV's Payment Department Director, called it a "data-cleansing revolution" to combat rising cybercrimes (659,000 attacks in 2024 affected 46% of agencies and firms).

What Happened to the Accounts?

1. Deactivation Process: Accounts lacking biometric data (linked to chip-based ID cards or the VNeID app) were flagged via cross-checks with the national database. Verification reached ~117 million records by June 2025, covering nearly all active digital accounts.
2. Access Denial: Owners can't log in, transfer funds, or use digital services. For high-value transactions, re-verification is required even on new devices.
3. Funds Status: Contrary to some viral claims of "seizure," official SBV statements describe this as a cleanup, not forfeiture. Funds remain in the accounts but are inaccessible until verification. Recovery is possible by visiting a bank in person for biometric scanning—challenging for expats or those abroad. Crypto advocates and some media outlets highlight the risks of prolonged inactivity, which can lead to potential escheatment (funds reverting to the state), but no widespread seizures have been confirmed.
4. Who Was Affected?: Mostly dormant "ghost" accounts (e.g., forgotten sign-ups), fraud bots, and those of foreigners who left Vietnam. Locals with active accounts were largely compliant; however, rural or elderly users faced hurdles due to limited access to technology.

Reasons and Broader Context

1. Fraud Prevention: Vietnam's banking sector saw explosive growth—credit hit 17.2 quadrillion VND (~$658 billion USD) by June 2025, up 19% year-over-year—but so did scams. Biometrics aim to stop fake accounts for money laundering or unauthorised withdrawals.
2. Digital Transformation: Part of the 2021–2025 National Cashless Payments Plan, tying into global trends like WEF's "Great Reset" for digital economies. Vietnam seeks OECD membership, and officials discussed unverified accounts at Davos in January 2025.
3. Criticisms: Privacy advocates decry it as a "biometric gulag," forcing data harvesting for surveillance. Bitcoiners on platforms like Reddit call it a push toward CBDCs (central bank digital currencies), with one expat noting he had to fly back to Vietnam to save his HSBC account—no remote options. Social media buzz (e.g., from Andrew Kaufman, MD) warns of parallels to U.S. REAL ID or EU digital IDs, framing it as a test for global control.

Reactions and Global Implications

1. In Vietnam: Mixed—officials praise the cleanup for security; locals report minor disruptions, but no mass protests. Crypto use is surging as an alternative.
2. International: U.S./EU commentators see it as a cautionary tale for privacy erosion, linking to Palantir surveillance or the U.K.'s digital ID debates. Thai media noted a similar (smaller) freeze of 3 million accounts in August 2025.
3. Outlook: By end-2025, Vietnam expects near-100% biometric coverage for active accounts. Globally, it accelerates debates on balancing security with freedoms—e.g., India's Aadhaar system faced lawsuits over data breaches.

This move underscores Vietnam's rapid shift to a digital economy, but it highlights the risks of exclusion for non-compliant users.