Blockchain technology has recently gained ground with the advent of cryptocurrencies. With the growing popularity of crypto assets, the technology registers more applications over time.
Thailand and Hungary have recently made a pact between their fintech associations. This new agreement will foster cooperation between the two parties on blockchain technology to facilitate their financial industries.
According to the report, the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition signed a bilateral Memorandum of Understanding (MOU). This MOU will support the introduction 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 facilitate their goals in innovative technologies.
In addition, they will explore areas with high beneficial potential for cooperation despite being separated by 5,000 miles. The MOU was signed by the technological associations of the two countries.
International Cooperation Needed for Blockchain Experimentation
The cooperation with Hungary seems to be happening at the right time for Thailand. Thailand’s central bank and other commercial banks were jointly testing a cross-border wholesale CBDC transaction platform. The initiative, which began in September, relied on distributed ledger technology.
In August, the Bank of Thailand Announced its plans to start a pilot CBDC retail in late 2022. However, its move will be on a limited scale, with an initial focus on the private sector, comprising only around 10,000 users. The test of the asset will be with the use of activities similar to cash, such as the payment of goods and services.
According to the Bangkok Post, TFA President Chonladet Khemarattana pointed to the increasing growth of e-commerce, digital currencies, and mobile payments in Thailand. Therefore, he recognized the need for international cooperation to support local fintech.
Thailand and Hungary have restrictions on cryptocurrencies
Thailand and Hungary have shown restrictive approaches to crypto assets and related service providers. For example, in February this year, the governor of the Hungarian National Bank, György Matolcsy, planned against cryptocurrency-related activities.
He sought a blanket ban on all cryptocurrency trading and mining throughout the European Union. According to his description, such activities with crypto assets are illegal and based on speculation.
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 effects on the stability of its financial system.
Additionally, the Thai SEC cracked down on crypto lending firms in the country. Additionally, it plans to ban crypto exchanges from providing or endorsing crypto assets.
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