Hungarian government to allow Banks to provide Bitcoin investment services 

Another big Bitcoin-related news came to light amid the Bitcoin bull sentiments, from Hungary.

Bitcoin (BTC), the top crypto asset by market cap, is currently available for almost every type of investor in the United States (US), as the US Securities and Exchange Commission (SEC) approved bitcoin spot ETF applications in Jan of this year. Institutional investors & retail traders are investing in Bitcoin via ETF products. Some other big insurance & savings account service provider companies are in queue to get approval to invest in Bitcoin. 

The current trade price of Bitcoin (BTC) is $61,700. Over the last 9 months, the trade price of Bitcoin surged rapidly because of the multiple positive news around Bitcoin e.g. multiple Bitcoin spot ETF applications with the SEC, Bitcoin halving, and US presidential campaigns ahead of the election. 

Amid the Bitcoin bull run, additional positive news around Bitcoin is playing a vital role in creating more hype & more money inflow in the Bitcoin market. 

On 1 March 2024, Bloomberg reported that the Hungarian government introduced draft legislation that would let banks, investment funds, and asset managers offer Bitcoin and other digital asset services. 

With this Bitcoin-friendly legislation, Hungarian lawmakers aimed to comply with the nation’s traditional financial regulatory structure with relevant European Union (EU) legislation.

As per legislation, 30 June will be a key step towards formalising the crypto market in a nation with this proposed bill. 

The Hungarian Central Bank, Magyar Nemzeti Bank (MNB), also looking forward to developing the sovereign digital currency, or say CBDC, to modernise the nation’s payment system but they are not in a hurry for this, as CBDC faced a huge struggle to get adoption in the majority of the early adopter countries.

It is worth it to know that reportedly the relationship between the Hungarian government & Central Bank is not smooth. Reportedly the central bank governor alleged that the government wants to reduce the independence of the central bank through new policies. 

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