Over 5,000 miles apart, Thailand and Hungary have decided to come together to explore the sector of blockchain technology and multiply its use-cases. A memorandum of understanding (MoU) has been signed between the financial technology associations of both the nations to work on the initiative. Both of the countries have been trying to find ways to facilitate safe and secure cross-border payment solutions, where the blockchain technology could prove to be a useful tool. Blockchain forms for the underlaying technology for majority Web3 applications like cryptocurrencies, metaverse, and NFTs among others.
The MoU has been signed between the Hungarian Blockchain Coalition and the Thai Fintech Association (TFA).
“The memorandum on the cooperation between the Thai Fintech Association and the Hungarian Blockchain Coalition, which aims to help the two organisations to share experience, best practices, and explore areas potentially beneficial for direct cooperation,” the Embassy of Hungary in Bangkok wrote in an official Facebook post.
Chonladet Khemarattana, the President of the TFA has claimed that developing the local fintech sector could significantly benefit from the e-commerce, online payments, and digital currency activities in the region.
Both, Thailand and Hungary have been taking a cautious approach towards the crypto sector fearing illicit use of these highly valuable assets. In February this year, the governor of the Hungarian National Bank, György Matolcsy had proposed a ban on crypto trading and mining.
Similarly, Thailand’s Securities and Exchange Commission (SEC) had banned the use of cryptocurrencies for payments to safeguard its financial setup against potential disruptions. But Thailand is really looking to use blockchain to ready its fintech sector for the Web3 future. The tourist-favourite nation is looking to launch a pilot of a retail CBDC by 2022 end. CBDC or central bank digital currency work just like crypto, but are issued and regulated by the central banks.