The Hong Kong government works with the CCIP (Cross-Chain Interoperability Protocol) from Chainlink to check cross-border transactions between approved and approved blockchains in addition to settlements using various forms of digital assets.
The partnership is a component of the second phase of the Central Bank Digital Currency (Digital Currency) in Hong Kong. According to a report by the Payment Company Visa, the initiative will affect a hypothetical Australian investor who wants to amass a tokenized asset in Hong Kong.
After requesting the acquisition in a stable coin that was classified to the Australia currency, the transaction is forwarded across several blockchains via interactions. Finally, the bought asset finds its way into the investor's wallet, which known as Hong Kong in CBDC.
Flow diagram illustrates a simulated cross -border transaction between an Australian StableCoin and a Hong Kong CBDC. Source: Visa
Chainlink's CCIP plays a job in communication between different blockchains. According to the corporate, CCIP lives on dozens of blockchains, including virtual Ethereum-machine-compatible and virtual Solana machine-compatible blockchains. In the case of the Hong Kong study, the Ethereum Testnet Sepolia is used.
The most vital partners for the study are visa, technology providers, Australia and the New Zealand banking group (Anz) in addition to the asset managers Chinaamc and Fidelity International. The study is one in all many who Hong Kong commissioned to look at applications for a possible CBDC.
This study focuses on the examination of the interaction between approved and approved blockchain. Blockchains granted are evaluated for his or her privacy and controlled environments that facilitate the enforcement of compliance and review of user identities. Blockchains, alternatively, offer broad decentralization and open participation, which provides them a powerful distribution effect.
The Monetary Authority (HKMA) in Hong Kong began the second phase two of the Hong Kong CBDC program on September 23, 2024. In this phase, 11 corporate groups will examine applications for the CBDC with the name E-HKD. The results of those studies are expected to be published by the top of 2025.
CBDC fever appears to be cooling
According to a survey in February 2025, only 18% of the central banks all over the world are inclined to issue a digital central bank in comparison with 38% in 2022, which indicates that interest in CBDC could also be cooled down.
Nevertheless, some countries and economic blocks are pushing with their CBDC plans. In March, Israel published a brief design for a digital schekel. In February, the European Union increased the efforts to develop the CBDC platform.
