Hungary, Indonesia Sign Blockchain Tech Cooperation Deal

In addition to knowledge sharing, the agreement aims to explore joint projects that pave the way for business cooperation between countries based on blockchain technology.

Indonesia is considered to be one of the world's most important blockchain hubs, with 25 crypto exchanges already listed, and the local national bank is also showing a keen interest in digital money.

One of the main missions of the Blockchain Coalition, launched in 2022 by the Neumann János Nonprofit, is to identify international business opportunities for domestic players in the development of blockchain technologies. To achieve this, a cooperation agreement for the joint utilization of Hungarian-Indonesian blockchain-based technologies was signed by Asih Karnengsih, president of the Asosiasi Blockchain Indonesia (Indonesian Blockchain Association), András Levente Gál, CEO of Neumann János Nonprofit, and Tamás Czeglédi, head of the Hungarian Blockchain Coalition.

Under the cooperation agreement, the two countries undertake to share their experience in the development of blockchain technologies and have committed to explore and jointly implement specific projects in the future.

Welcoming the agreement, Gergely Fábián, State Secretary for Industrial Policy and Technology, said, "The Asian continent's innovation capacity is already far beyond that of Europe and is even competing for world leadership. At the same time, the knowledge of Hungarian development engineers is also competitive at the international level, so the mutual exchange of experience is beneficial for both sides." 

"The question today is not whether blockchain technology can ever be mass-produced, but when. We already have the knowledge and experience to build on which could make Hungary the leading blockchain center in the region in the future," he added.

Tamás Czeglédi, head of the Hungarian Blockchain Coalition, said, "It will take a lot of time, work, learning, and knowledge-sharing to achieve mass adoption, but the opportunities are open, whether in European or cross-continental projects. Establishing cooperation with Indonesia is key because the country has gained considerable experience in technology in recent years and has identified strategic directions that are dominantly different from the Hungarian approach."

"It has the largest number of registered crypto exchanges in the world, with 25 in total, a state-owned crypto exchange is on the agenda and the Central Bank of Indonesia is already showing a strong interest in introducing a central bank digital currency (CBDC)," he noted.

Blockchain technology is considered one of the most promising online authentication solutions with mass adoption expected in the near future. At present, the main barrier to adoption is the lack of a globally agreed regulatory environment, and the cooperation just signed will also allow the Indonesian Blockchain Association to learn about the European Union's Crypto Regulation (MiCA) and its application.

Blockchain technology is a ledger of digital blocks of information in the online space that are encrypted during transactions. The resulting blockchains cannot be deleted or modified, but are transparent and therefore accessible to all. Precisely because of these characteristics, they are widely used in financial digitalization, transport, automotive, healthcare, and supply chains.