Thailand collaborates with Hungary for introducing blockchain developments in financial sectors | The Financial Express

Thailand collaborates with Hungary for introducing blockchain developments in financial sectors

According to Cointelegraph, as per the agreement signed on October 25, 2022, between Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition, the two platforms are expected to share experiences, practices and explore areas that could potentially benefit from direct cooperation

Thailand collaborates with Hungary for introducing blockchain developments in financial sectors
In August, 2022, the Bank of Thailand announced about its aim to begin a retail CBDC by the end of 2022 at a limited scale in the private sector among around 10,000 users

The financial technology associations for Thailand and Hungary have reportedly entered into a bilateral Memorandum of Understanding (MOU) for supporting the introduction of blockchain with regard to their respective financial sectors, as reported by Cointelegraph.

According to Cointelegraph, as per the agreement signed on October 25, 2022, between Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition, the two platforms are expected to share experiences, practices and explore areas that could potentially benefit from direct cooperation. Chonladet Khemarattana, president, TFA, stated that e-commerce, mobile payments, and digital currencies are growing in Thailand, and highlighted the need for global cooperation for further developments of financial technology. Khemarattana also made the claim that 20% of world cryptocurrency holders are in Thailand, which is placed eighth on the 2022 Global Cryptocurrency Adoption Index released in September, 2022, published by analytics firm Chainalysis and cryptocurrency payments company TripleA, made estimations of 6.5% population owning cryptocurrency. 

On the basis of information by Cointelegraph, the Hungarian Blockchain Coalition was created as a joint collaboration between the country’s Ministry of Innovation and Technology and the National Data and Economy Knowledge Centre in March, 2022, while the TFA is a non-profit launched in 2016, with the aim of representing the local financial technology industry including cryptocurrency exchanges. It is believed that the pact has come on account of Thailand’s central bank, along with some of the country’s commercial banks, were related to the testing of a cross-border wholesale central bank digital currency (CBDC) transaction platform using distributed ledger technology (DLT) in September, 2022. In August, 2022, the Bank of Thailand announced about its aim to begin a retail CBDC by the end of 2022 at a limited scale in the private sector among around 10,000 users.

Moreover, Cointelegraph noted that Thailand’s Securities and Exchange Commission (SEC) has introduced certain restrictions on cryptocurrency this year, with it banning the use of cryptocurrencies for payments in March, 2022, on account of financial stability implications.

(With insights from Cointelegraph)

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First published on: 31-10-2022 at 14:12 IST