Hong Kong leverages blockchain in digitizing shipping sector, powering up CBDC trial

Hong Kong is utilizing blockchain technology to revolutionize its shipping sector and bolster its central bank digital currency (CBDC) trial. The Global Shipping Business Network (GSBN), a Hong Kong-based non-profit organization, has successfully developed a prototype electronic bill of lading (eBL) using blockchain technology in collaboration with Ant Group. This prototype has garnered praise from industry stakeholders and has the potential to become an industry-wide solution. With key shipping players such as OOCL, Hapag-Lloyd, and Cosco Shipping on board, GSBN aims to onboard other industry giants and increase adoption numbers. The Hong Kong Monetary Authority (HKMA) has also shown support for this initiative by including an eBL use case in the pilot for its wholesale CBDC. The use of blockchain in the shipping sector is a significant step forward, as traditional paper-based bills of lading have remained largely unchanged for centuries. Hong Kong’s proactive approach to embracing blockchain technology is evident through its supportive legislation, lowered entry requirements for Web3 firms, and various initiatives aimed at promoting blockchain adoption and innovation.