Thailand and Hungary, located more than 5,000 miles away, have decided to collaborate to research the blockchain industry and expand its use cases. To collaborate on the project, the financial technology associations of the two countries have signed a memorandum of understanding (MoU). Blockchain technology may be an effective tool for both nations as they search for ways to provide safe and secure cross-border payment solutions. Most Web3 applications, including cryptocurrencies, metaverse, and NFTs, use blockchain as their foundational technology.
The Thai Fintech Association and the Hungarian Blockchain Coalition have struck an agreement (TFA).
The Hungarian Embassy in Bangkok published an official Facebook post titled “The Memorandum on the Cooperation between the Thai Fintech Association and the Hungarian Blockchain Coalition, which aims to help the two organizations share experiences, and best practices and explore areas potentially beneficial for direct cooperation.”
The development of the local fintech industry, according to TFA President Chonladet Khemarattana, may greatly benefit from the operations related to e-commerce, online payments, and digital currencies.
Both Thailand and Hungary have adopted a cautious stance toward the cryptocurrency industry out of concern about the unlawful usage of these costly commodities. György Matolcsy, the governor of the Hungarian National Bank, advocated a ban on cryptocurrency trade and mining in February of this year.
To protect its financial system from disruptions, Thailand’s Securities and Exchange Commission (SEC) has also prohibited using cryptocurrencies for payments. However, Thailand is aiming to employ blockchain to get its banking industry ready for the future of Web 3. By the end of 2022, the country hopes to start a retail CBDC pilot program. CBDCs, or central bank digital currencies, function similarly to cryptocurrencies but are created and controlled by the major banks.