Blockchain technology has recently gained traction through the advent of cryptocurrency. With the increased demand for crypto assets, the technology records more requests over time.
Recently, Thailand and Hungary entered into an agreement between their financial technology associations. This new agreement will foster cooperation between the two parties regarding blockchain technology to facilitate their financial industries.
According to the report, the Thailand Fintech Association (TFA) and the Hungarian Blockchain Coalition signed a bilateral Memorandum of Understanding (MOU). This MOU will support the introduction of blockchain technology into the financial sectors of both countries.
The Hungarian Embassy in Bangkok revealed some details about the MoU through a Facebook post. The MOU will enable both countries to share experiences and best practices to facilitate their goals in innovative technologies.
They will also explore areas that have high potential for cooperation despite being 5,000 miles apart. The MOU was signed by the technology societies of both countries.
International Cooperation Necessary For Blockchain Experimentation
Cooperation with Hungary seems to be happening at the right time for Thailand. Thailand’s central bank and other commercial banks have been jointly testing a cross-border CBDC wholesale transaction platform. The initiative, which began in September, relied on distributed ledger technology.
In August, the Bank of Thailand Announced its plans to start retail CBDC guidance by the end of 2022. However, it will be transferred on a limited scale, with an initial focus on the private sector, which will include around 10,000 users. The asset will be tested using cash-like activities such as payment for goods and services.
According to Bangkok Post, TFA president Chonladet Khemarattana noted the increasing growth of e-commerce, digital currencies and mobile payments in Thailand. Therefore, he acknowledged the need for international cooperation to support local financial technology.
Thailand And Hungary Restrictions On Cryptocurrency
Thailand and Hungary have shown a restrictive approach to crypto assets and related service providers. For example, in February of this year, the governor of the National Bank of Hungary György Matolcsy planned against activities related to crypto.
He sought a complete ban on cryptocurrency trading and mining across the European Union. According to her report, such activities with crypto assets are illegal and based on opinions.
As for Thailand, the country’s Securities and Exchange Commission (SEC) endorsed several 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.
Also, Thailand’s SEC has cracked down on crypto lending firms in the country. Additionally, it plans to ban crypto exchanges from providing or supporting crypto assets.
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