The Hong Kong government is working with Chainlink’s Cross-chain Interoperability Agreement (CCIP) to test cross-border transactions between licensed and licensed blockchains, as well as settlements using different types of digital assets.
The partnership is part of the second phase of the Central Bank of Hong Kong Digital Currency (CBDC) initiative. according to In a Payments Company Visa report, the plan will involve a hypothetical Australian investor who wants to buy token assets in Hong Kong.
After purchase with fixed stablecoins in fixed Australian currency, the transaction will be routed through interactions across multiple blockchains. Eventually, the purchased assets entered the investor’s wallet and were named after the CBDC in Hong Kong.
ChainLink’s CCIP plays a role in communication between different blockchains. According to the company, CCIP broadcasts dozens of blockchains live, including Ethereum virtual machine compatibility and Solana virtual machine compatible with blockchain. In the case of Hong Kong research, Ethereum testing net Sepolia will be used.
The main partners of the study are visas, as a technology provider, Banking Group Australia and New Zealand (ANZ), as well as asset managers China AMC and Fidelity International. This study is one of many studies commissioned by the Hong Kong government to explore possible use cases of CBDC.
The focus of this study is to examine the interaction between licensed and licenseless blockchains. Permissioned blockchains are valued for their privacy and controlled environments, which makes it easier to enforce compliance and verify user identity. By contrast, permissionless blockchains provide extensive decentralization and public participation, resulting in a strong distribution effect.
Hong Kong Monetary Authority (HKMA) start The second phase of the Hong Kong CBDC program will be on September 23, 2024. At this stage, 11 companies will explore the use cases of CBDC, called E-HKD. The findings of these studies are expected to be published by the end of 2025.
Related: What is CBDC? Why central banks want to enter digital currency
CBDC heat seems to be cooling
According to a February 2025 survey, only 18% of central banks around the world are Inclined to issue central bank digital currenciescompared to 38% in 2022, suggesting interest in CBDC may be cooling.
Nevertheless, some countries and economic groups are still strengthening their CBDC programs. In March, Israel Releases preliminary design for Digital Shekel. In February, the EU Strengthened efforts to develop CBDC platform.
Magazine: Asian Express: India considers supporting CBDC’s new encryption ban, Lazarus Group strikes again
