Hungary And Thailand Set To Test Blockchain Technology

Blockchain technology has gained traction recently through the advent of cryptocurrency. With the increased popularity of crypto assets, the technology records more applications over time.

Recently, Thailand and Hungary have made a pact between their financial technology 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 Hungarian Blockchain Coalition signed a bilateral Memorandum of Understanding (MOU). This MOU will support the introduction of blockchain technology to the financial sectors of the two countries.

The Embassy of Hungary in Bangkok revealed some details of the MOU through a Facebook post. The MOU will enable the two countries to share experiences and best practices to facilitate their goals in innovative technologies.

Also, they will explore areas with high beneficial potential for cooperation despite being 5,000 miles apart. The MOU was signed by the tech associations of the two countries.

International Cooperation Necessary For Blockchain Experimantation

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 started in September, depended on distributed ledger technology.

In August, the Bank of Thailand announced its plans to start a pilot CBDC retail by ending of 2022. However, its move will be on a limited scale, with an initial focus on the private sector, comprising just about 10,000 users. The test of the asset will be with the use of cash-like activities like payment for goods and services.

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

Thailand And Hungary Have Restrictions On Cryptocurrency

Thailand and Hungary have shown restrictive approaches to crypto assets and related service providers. For example, in February this year, the Hungarian National Bank’s governor György Matolcsy planned against crypto-related activities.

He sought a blanket ban on all cryptocurrency trading and mining across the European Union. According to his description, such activities with crypto assets are illegal and are based on speculations.

Hungary And Thailand Set To Test Blockchain Technology
Crypto market on the way to $2 trillion | Source: Crypto Total Market Cap on TradingView.com

For Thailand, the country’s Securities and Exchange Commission (SEC) endorsed 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 their financial system.

Also, the Thailand SEC cracked down on crypto lending firms in the country. In addition, it plans to ban crypto exchanges from providing or supporting crypto assets.

featured Image From Pixabay, Charts From Tradingview

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