Thai and Hungarian fintech associations have signed a bilateral Memorandum of Understanding (MOU) to support the introduction of blockchain technology in their respective financial sectors.
The MOU, signed by the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition on Oct. 25, will see the two associations “share experiences, best practices, and explore potentially beneficial areas for direct cooperation,” according to Facebook. mail by the Embassy of Hungary in Bangkok.
TFA President Chonladet Khemarattana said e-commerce, mobile payments and digital currencies are growing rapidly in Thailand and international cooperation is needed to further develop local fintech. according to to an Oct. 29 report in the Bangkok Post.
He also stated that 20% of the world’s cryptocurrency holders are in Thailand, the country ranked 8th in the 2022 Global Cryptocurrency Adoption Index. released in september by analysis company Chainalysis and crypto payment company TripleA Dear almost 6.5% of the population owns cryptocurrencies,
The Hungarian Blockchain Coalition was jointly created by the country’s Ministry of Innovation and Technology and the National Center for Data Knowledge and Economy in March 2022, while the Thailand Fintech Association is a non-profit organization founded in 2016 with the goal of representing the local fintech industry. including cryptocurrency exchanges.
The deal comes as Thailand’s central bank, along with some of the country’s commercial banks, were involved in the tests of a wholesale cross-border central bank digital currency (CBDC) transaction platform using distributed ledger technology in September.
The Bank of Thailand also announced in August that it was seeking start a pilot of a retail CBDC by the end of 2022 on a limited scale in the private sector among approximately 10,000 users. It would test digital currency using “cash-like activities” such as paying for goods or services.
Meanwhile, the Thai Securities and Exchange Commission (SEC) has enacted some restrictions on cryptocurrencies this year, banning the use of cryptocurrencies for payments in March saying that “they could affect the stability of the financial system.”
The regulator is also cracking down on crypto lending platforms with the SEC planning to ban crypto exchanges from providing or supporting digital asset deposit services.
Hungary apparently takes a similarly tough stance on cryptocurrencies, in February Hungarian National Bank Governor György Matolcsy wanted a blanket ban on all cryptocurrency trading and mining throughout the European Union saying that it “served illegal activities” and was “speculative”.