The pact was inked during the first slot of “Thai-Hungarian Fintech Forum: Powering the Financial Revolution Together,” an event organized by the Hungarian Embassy, aimed to exhibit financial technology services.
The Thai Fintech Association (TFA) and Hungarian Blockchain Coalition signed a Memorandum of Understanding (MOU) to jointly accommodate the foundation of new blockchain technologies in their respective financial markets to spruce up fintech, e-commerce, and e-payments. This pact was inked during the first slot of “Thai-Hungarian Fintech Forum: Powering the Financial Revolution Together,” an event organized by the Hungarian Embassy, aimed to exhibit financial technology services. Thailand ranks second in the world, with 9.9% of Thai internet users owning cryptocurrencies, fueling speculation about its potential as a crypto hub. With crypto assets gaining major investment grounds in the sea of finance, blockchain and proximate technologies ensure that investors don’t miss the boat.
The Hungarian Embassy in Bangkok brought to light a few details entailing the MOU empowering both countries to partake in opportunities and practices that would set the seal on fulfilling their respective goals. As a result of the MOU, the two countries shall be able to explore areas with high prospects for cooperation in order to eliminate the 5000-mile distance between them.
TFA president Chonladet Khemarattana acknowledged Thailand’s growth in the digital currency zone stating that the nation has 20% of the world’s crypto holders, according to Chainalysis 2022 Global Crypto Adoption Index released in September quarter. However, he believes advanced development in local fintech technologies will require international cooperation. “The future collaboration with Hungarian companies will help Thailand to gain more experience. It will also help both countries to initiate new ideas or services in the future”, he mentions.
As a result of this coalition, multiple Hungarian companies belonging to the digital assets industry set foot in Thailand’s financial ecosystem. Various corporations were approached by Khemarattana to seize this golden opportunity.
Hungary and Thailand have remained a subject of aggravation and examination by the regulators when it comes to blockchain and virtual assets, despite the efforts of the two organisations. Regulators in Thailand are squelching on digital assets lending platforms. Service providers are expecting a potential ban on the provision of depository services. Virtual currencies are facing toils in both nations, but the use of Digital Ledger Technology (DLT) or Blockchain Technology is being encouraged by the respective governments. The Securities and Exchange Commission (SEC) has also limited the use of crypto as a payment method to safeguard financial stability.
Gyorgy Matolcy, the governor of the Central Bank of Hungary, had previously urged the European Union to impose an indiscriminate ban on digital assets being traded across the zone, citing reasons that they were speculative and posed economic illegalities.
The Central Bank of Thailand, along with the commercial banks, is testing a cross-border Central Bank Digital Currency (CBDC). This national fiat is to offer benefits to the financial system of the country under substantial risk management by the end of the year. The Bank also unearthed an intent to launch a trial run programme for a retail CBDC on a small scale. On the lines of this foundation test, the electronic currency will serve to conduct cash-like transactions involving payment for goods and services. However, there is a potential five-year delay in the delivery of retail CBDC, as the development process is still in its infancy.
Matolcy appears receptive on account of CBDCs, stating they “might be one of the next steps for digital currency to become a form of payment”, given users boost their “learning-by-doing” capability.