Hungarian Central Bank Reveals Fintech Strategy to Foster Financial Innovation

The report, titled ‘Financial Innovation and Stability,’ is the product of central bank collaboration with Hungarian companies working in the fintech industry. It is comprised of a total of 24 new proposals and initiatives. The Magyar Nemzeti Bank believes it important to move quickly towards the digitization of the financial system. As a part of this strategy, the proposals put forward include efforts to improve financial knowledge and training for those involved in the industry. Aiding with the implementation of the new strategy will be an executive team established in May of this year. The Supervisory Lab for Financial Innovations will monitor the international development of fintech solutions and work towards implementing them in the Hungarian financial system. Similarly, the MNB strategy is being supported by the Digitalization and FinTech Advisory Board, set up by the bank in September of 2019. Hungary is not particularly known for its fintech industry — something that the new strategy will aim to address. It only became a member of the European Blockchain Partnership, this February. The new MNB strategy, despite claiming to foster innovation in the financial industry, makes no clear reference to either Bitcoin or cryptocurrency. Like many central banks, the MNB has previously warned the public about the potential risks associated with digital currencies but is yet to properly regulate the industry. A report in BreakerMag describes how Bitcoin was once seen in Hungary as a powerful and potentially liberating financial tool, with people rushing to try it out for real-world purchases. However, as of the time of the article’s publication in October 2018, this optimism has reportedly been replaced with greed, as most apparently now see digital assets as little more than a tool for speculation. What do you think about Hungary’s new fintech strategy? Will it encourage innovation in the nation? Comment with your thoughts down below.

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