Hungary and Thailand want to test blockchain technology

Blockchain technology has recently gained prominence with the emergence of cryptocurrency. As crypto assets increase in popularity, the technology sees more applications over time.

Recently, Thailand and Hungary struck a pact between their financial technology associations. This new agreement will promote collaboration between the two parties in relation to blockchain technology to support their financial industries.

According to the report, the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition have signed a bilateral Memorandum of Understanding (MOU). This MOU will support the adoption of blockchain technology in the financial sectors of the two countries.

The Hungarian embassy in Bangkok revealed some details of the MOU through a Facebook post. The MOU will allow the two countries to share experiences and best practices to achieve their goals in innovative technologies.

They will also explore areas of high potential for collaboration despite being 5,000 miles apart. The MOU was signed by the technology associations of the two countries.

International collaboration needed for blockchain experiments

Hungary and Thailand want to test blockchain technology

Cooperation with Hungary seems to come at the right time for Thailand. The Central Bank of Thailand and other commercial banks jointly piloted a wholesale cross-border CBDC transaction platform. The initiative launched in September relied on distributed ledger technology.

In August, the Bank of Thailand announced its plans to launch a pilot CBDC retail store by the end of 2022. However, this move will be on a limited scale, with an initial focus on the private sector, which only has around 10,000 users. The asset is tested through cash-like activities such as paying for goods and services.

According to the Bangkok Post, TFA President Chonladet Khemarattana noted the increasing growth of e-commerce, digital currencies and mobile payments in Thailand. Therefore, he recognized the need for international cooperation to support local financial technology.

Thailand and Hungary have restrictions on cryptocurrency

Thailand and Hungary have shown restrictive approaches towards crypto assets and related service providers. For example, the Governor of the National Bank of Hungary, Gy├Ârgy Matolcsy, plotted against crypto-related activities in February this year.

He called for a blanket ban on all cryptocurrency trading and mining across the European Union. According to his description, such activities involving crypto assets are illegal and based on speculation.

Hungary and Thailand want to test blockchain technology
Crypto Market On Track To $2 Trillion | Source: Crypto Total Market Cap on TradingView.com

For Thailand, the country’s Securities and Exchange Commission (SEC) approved some restrictions on crypto assets this year. In March, the Commission banned the use of digital assets for payments, citing their adverse impact on the stability of their financial system.

Also, Thailand’s SEC cracked down on crypto lending companies in the country. In addition, there are plans to ban crypto exchanges from providing or supporting crypto assets.

featured Image From Pixabay, Charts From Tradingview

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