The Hong Kong government is partnering with the Cross-Chain Interoperability Protocol (CCIP) of the Chanlink to tested the border transaction between permission and permitted blockchains, as well as using various types of digital assets.
The partnership is part of Phase two of Hong Kong’s Central Bank Digital Currency (CBDC) initiative. According For a report of the payment company visa, the initiative will include a fictional Australian investor who wants to buy a token property in Hong Kong.
After requesting purchases in a stabechoin for Australia’s currency, the transaction will be rooted through interaction in several blockchain. Finally, the property purchased finds its way into the investor’s wallet, depicted at the CBDC in Hong Kong.
CCIP of Chanlink plays a role in communication between various blockchain. According to the company, the CCIP is live on dozens of blockchain, including the Ethereum virtual machine-component and solana virtual machine-compacted. In the case of Hong Kong’s study, atherium testnet sepolia will be used.
Prominent partners for the study are a technology provider, Australia and New Zealand Banking Group (ANZ), and asset managers ChinaAMC and Fidelity Internationals. The study is one of the several that the Hong Kong government is commissioning to detect cases of use for a potential CBDC.
This study focuses on examining the interaction between permission and permissionless blockchain. The allowed blockchain is given importance for their privacy and controlled environment, which makes it easier to apply compliance and verify the user’s identity. Conversely, permitted blockchains, comprehensive decentralization and open participation provide them a strong distribution effect.
Hong Kong Monetary Authority (HKMA) Started Phase two of the Hong Kong CBDC program on 23 September 2024. During this phase, 11 companies will detect cases of use for CBDC, called e-HKD. The findings of these studies are expected to be published by the end of 2025.
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CBDC fever appears to be cold
According to a February 2025 survey, only 18% of central banks around the world are willing to issue a central bank digital currency, compared to 38% in 2022, indicating that the interest in CBDC may cool down.
Nevertheless, some countries and economic blocks are pressurizing with their CBDC plans. In March, Israel released an initial design for a digital shekel. In February, the European Union increased efforts for CBDC platform development.
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