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Blockchain technology has gained momentum recently with the advent of cryptocurrencies. As cryptocurrencies grow in popularity, the technology will record more applications over time.
Thailand and Hungary recently signed an agreement between financial technology associations. The new agreement will facilitate cooperation between the two parties on blockchain technology and facilitate the financial industry.
According to reports, Thailand’s Fintech Association (TFA) and Hungary’s Blockchain Union have 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 details of the MOU through a Facebook post. The MOU will enable the two countries to share experiences and best practices and further their respective goals in innovative technology.
They also explore areas that are likely to be beneficial for cooperation, even if they are 5,000 miles apart. The MOU was signed by the technical associations of both countries.
International cooperation needed for blockchain experiments
Cooperation with Hungary seems to come at the right time for Thailand. The central bank of Thailand and other commercial banks were jointly testing a cross-border wholesale CBDC trading platform. The initiative, launched in September, relied on distributed ledger technology.
In August, the Bank of Thailand announced plans to launch pilot CBDC retail by the end of 2022. However, the move is of limited scale, initially focused on the private sector, which consists of around 10,000 users. Asset testing is done using cash-like activities, such as payment for goods and services.
According to Bangkok Post, TFA Chairman Chonradet Khemaratana has noted the increasing growth of e-commerce, digital currencies and mobile payments in Thailand. He therefore recognized the need for international cooperation to support local financial technology.
Thailand and Hungary Place Restrictions on Cryptocurrencies
Thailand and Hungary have shown restrictive approaches to crypto assets and related service providers. For example, in February this year, the president of the Hungarian National Bank, György Matolcsy, planned to oppose cryptocurrency-related activities.
He called for a total ban on all cryptocurrency trading and mining across the European Union. According to his explanation, such activities using crypto assets are illegal and based on speculation.
As 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 negative impact on the stability of the financial system.
Thailand’s SEC has also cracked down on domestic cryptocurrency lending companies. Additionally, we plan to ban crypto exchanges from offering or supporting crypto assets.
featured Image From Pixabay, Charts From Tradingview
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