Through the introduction of cryptocurrency, blockchain technology has recently picked up steam. As the prominence of crypto assets grows, so will the technology's applications.

Thailand and Hungary recently formed a financial technology alliance. This new agreement will encourage the two parties to collaborate on blockchain technology to help their economic sector.

According to the report, the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition signed a joint Memorandum of Understanding (MOU). This MOU will help the two countries' financial sectors adopt blockchain technology.

The Embassy of Hungary in Bangkok disclosed some details of the MOU in a Facebook post. The MOU will allow the two nations to share experiences and best practices to achieve their technological innovation goals.

Moreover, despite being separated by 5,000 miles, they will investigate areas with high potential for collaboration. The two countries' tech associations signed the agreement.

Blockchain Experimentation

Thailand appears to be cooperating with Hungary at the right time. Its central bank was testing a cross-border wholesale CBDC transaction platform with other commercial banks. The project, which began in September, relied on a distributed ledger.

The Bank of Thailand announced its intention to launch a pilot CBDC retail program in August. However, the company's initial focus will be on the private sector, with only about 10,000 users. The asset will be tested using cash-like activities such as payment for services and goods.

TFA president Chonladet Khemarattana, according to the Bangkok Post, noted the rising growth of e-commerce, virtual currencies, and mobile payments in the country. As a result, he recognized the importance of international cooperation in advancing local financial technology.

Both have cryptocurrency restrictions

Thailand and Hungary have taken restrictive strategies for crypto assets and associated service providers. For example, the Hungarian National Bank's governor, György Matolcsy, plotted against crypto-related activities in February of this year.

He desired a blanket prohibition on all cryptocurrency and mining throughout the European Union. According to his description, such activities involving crypto assets are illegal and based on speculation.

Thailand's Securities and Exchange Commission (SEC) approved some crypto-asset restrictions this year. In March, the commission prohibited the use of digital assets for payment, quoting their negative impacts on the financial system's consistency.

The Securities and Exchange Commission also cracked down on crypto lending firms in the country. Furthermore, it intends to prohibit crypto exchanges from offering or supporting crypto assets.

What are your thoughts on Hungary and Thailand working together to test blockchain technology? Drop your comments by sharing this article on social media.

Nov 1, 2022
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