The Hong Kong government is entering a partnership with Chainlink to utilize its Cross-Chain Interoperability Protocol (CCIP) as part of a pilot project for its central bank digital currency (CBDC). This collaborative effort aims to facilitate testing of cross-border transactions between both permissioned and permissionless blockchains, along with the use of various digital assets for settlements.
As part of this initiative, a hypothetical scenario involving an Australian investor will explore how they can purchase a tokenized asset in Hong Kong using a stablecoin tied to the Australian currency. The transaction would be routed through multiple blockchains, ultimately delivering the purchased asset to the investor's wallet in Hong Kong's CBDC. Chainlink's CCIP is designed to enable communication across these different blockchain environments and is currently operational across several blockchain platforms, including Ethereum and Solana. The Ethereum testnet Sepolia will be leveraged for this study.
Key stakeholders in this pilot project include Visa as the technology provider, along with Australia and New Zealand Banking Group (ANZ), and asset managers such as ChinaAMC and Fidelity International. This project is part of a broader Phase Two effort by the Hong Kong Monetary Authority (HKMA) which began on September 23, 2024. This phase will see eleven companies examining various use cases for the CBDC, referred to as e-HKD, with findings expected to be released by the end of 2025.
The partnership reflects Hong Kong's strategic approach to exploring the functionality and interoperability of CBDCs, particularly in light of evolving global interest in digital currencies. While a recent survey indicated a dip in worldwide interest in CBDCs, some regions, including Europe and Israel, are still advancing their digital currency agendas.
As part of this initiative, a hypothetical scenario involving an Australian investor will explore how they can purchase a tokenized asset in Hong Kong using a stablecoin tied to the Australian currency. The transaction would be routed through multiple blockchains, ultimately delivering the purchased asset to the investor's wallet in Hong Kong's CBDC. Chainlink's CCIP is designed to enable communication across these different blockchain environments and is currently operational across several blockchain platforms, including Ethereum and Solana. The Ethereum testnet Sepolia will be leveraged for this study.
Key stakeholders in this pilot project include Visa as the technology provider, along with Australia and New Zealand Banking Group (ANZ), and asset managers such as ChinaAMC and Fidelity International. This project is part of a broader Phase Two effort by the Hong Kong Monetary Authority (HKMA) which began on September 23, 2024. This phase will see eleven companies examining various use cases for the CBDC, referred to as e-HKD, with findings expected to be released by the end of 2025.
The partnership reflects Hong Kong's strategic approach to exploring the functionality and interoperability of CBDCs, particularly in light of evolving global interest in digital currencies. While a recent survey indicated a dip in worldwide interest in CBDCs, some regions, including Europe and Israel, are still advancing their digital currency agendas.
