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These Countries Plan To Use Blockchain for Financial Service Development

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VOC, Voice of Crypto, Blockchain Technology

Key Insights

  • Thailand’s Financial Association (TFA) and the Hungarian Blockchain Coalition signed an MOU for Blockchain technology testing. 
  • The bilateral MOU will use blockchain technology for financial service development.
  • The MOU, alongside CBDC testing, are some of the strides of Thailand toward mainstream crypto adoption.

Hungary and Thailand consolidated their relationships and took blockchain adoption a notch higher.  The Thai Financial Association (TFA) and the Hungarian Blockchain Coalition signed an MOU to test blockchain technology. 

Reportedly, the rationale behind the MOU is for the two countries to share experiences. They will also collaborate on best practices and explore areas potentially beneficial for direct cooperation. 

Interestingly, the Thai Fintech Association was founded in 2016 as a non-profit organization. It was founded to represent the local financial technology industry, including cryptocurrency exchanges. 

Similarly, the Hungary Blockchain coalition was created in March 2022. It is a coalition of Hungary’s ministry of innovation and technology & the National data and economy knowledge center. 

The MOU signed by both country representatives will ensure collaboration on blockchain technology to strengthen their financial industry. 

Chonladet Khemarattana, the Thai Fintech Association (TFA)’s president, said the collaboration is necessary to develop local financial technology. 

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He said, “e-commerce, mobile payments, and digital currencies are growing rapidly in Thailand—international cooperation is needed to develop local financial technology further.”

However, there are no details on when the launch will take place or the technical details of the proposed test. 

Thailand’s Strides in Crypto and Blockchain Ecosystem

Experts have noticed and acknowledged several steps Thailand took in the cryptocurrency ecosystem. You would recall that recently, Thailand, alongside some commercial banks, engaged in testing a cross-border digital currency. Thailand’s Central Bank Digital Currency (CBDC) was tested using distributed ledger technology in September. 

The plan to launch the pilot CBDC retail was announced in August, tested in September—and will become functional by the end of 2022. 

The initial plan will be on a limited scale for the private sector comprising about 10,000 users. The initial launch will cover cash-like activities such as retail payments for goods and services. 

In March, Thailand’s Securities and Exchange Commission (SEC) announced some cryptocurrency restrictions. The SEC banned using digital payments as having adverse effects on the financial system’s stability. Some crypto-lending platforms were also banned.

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This is similar to the plan of György Matolcsy, the Hungarian National Bank’s governor. He sought a ban against crypto-related activities, crypto trading, and mining across the European Union. 

Final Thoughts

The TFA President identified the fast-growing crypto ecosystem in Thailand. He said Thailand holds 20% of the world’s crypto holders. Chainalysis placed Thailand as the eighth country on the 2022 Global Crypto Adoption Index

These statistics show that the country has identified the potential of cryptocurrency and Blockchain technology. With collaborations and the launch of plans, the country and its financial institution stand to benefit more. 

 

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