Hungary and Thailand to jointly investigate blockchain technology

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Key Takeaways:

  • Thai and Hungarian business associations are looking forward to collaborating in order to use blockchain technology in the financial services sector.
  • The parties hope to share ideas for new services and experiences as part of their new alliance.

The Thai Fintech Association (TFA) and the Blockchain Coalition of Hungary have drafted a Memorandum of Understanding (MoU) to facilitate the implementation of new technologies in their corresponding financial sectors.

According to a Facebook post by the Hungarian Embassy in Bangkok, the MOU between the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition will allow the two organisations to “share experiences, best practises, and discover areas potentially beneficial for direct cooperation.”

According to a Facebook post by the Hungarian Embassy in Bangkok, the MOU, which was signed on October 25 by the Thai Fintech Association (TFA) and the Hungarian Blockchain Coalition, will see the two associations foster collaboration, analyse fields that could benefit from joint efforts.

On October 29, the Bangkok Post cited TFA president Chonladet Khemarattana as saying that e-commerce, mobile payments, and digital currencies are expanding quickly in Thailand and that furthering local financial technology development requires global and multilateral cooperation.

Furthermore, the TFA president claimed that 20% of the world’s cryptocurrency owners belong to Thailand, which was ranked ninth in the 2022 Global Crypto Adoption Index published in September by analytics firm Chainalysis and forecasts that nearly 6.5% of the populace owns bitcoin.

The National Data and Economy Knowledge Center and the Ministry of Innovation and Technology of Hungary jointly organized the Hungarian Blockchain Coalition in March 2022, while the Thai Fintech Association was established as a nonprofit organisation in 2016 with the goal of reflecting the regional banking technology sector, including cryptocurrency exchanges.

The memorandum of understanding came at the same time when Thailand’s central bank and a few of its commercial banks started exploring platforms for cross-border wholesale central bank digital currency (CBDC) transactions using distributed ledger technology.

Until the end of 2023, the Thai government also intends to exempt the transfer of cryptocurrencies or digital tokens from value-added tax (VAT).

Sándos Sipos, the Hungarian ambassador to Thailand, asserts that Hungary sees the development of strong collaborations with partners in the fintech industry and the advancement of cutting-edge alternatives as the greatest priority. He went on to say that the “diplomatic mission” is aware of the need to change economic patterns.

Sipos recalled that the two countries would commemorate their 50 years of diplomatic relations next year. Following the participation of Bank of Thailand Governor Sethaput Suthiwartnarueput in the Budapest Eurasia Forum hosted by the Hungarian National Bank last month, he characterized the joint statement as another significant step in the fiscal partnership between Hungary and Thailand.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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