While Brazil and Hong Kong are seeing real-world benefits from blockchain trade finance, the European Central Bank is still focused on the theoretical advantages of its Digital Euro.
Brazil and Hong Kong have successfully tested blockchain-based trade finance, allowing SMEs to sell goods and services abroad faster and more securely.
The experiment, led by Inter Banco and powered by Chainlink, involved the Central Bank of Brazil (BCB), the Hong Kong Monetary Authority (HKMA), Standard Chartered, GSBN, and 7COMm. It tested how programmable payments could automate international transactions, linking digital currencies and trade platforms across borders.
SMEs were able to simulate selling services overseas, with payments automatically released as goods reached their destination. Electronic bills of lading were updated in real time, while tokenised assets provided instant liquidity to buyers and sellers.
“Inter is betting on innovation to create solutions that have a positive impact on the financial lives of our clients and on the economy as a whole,” said Bruno Grossi, Head of Digital Assets at Inter.
“By using Chainlink to connect the BCB, the HKMA, and trade finance platforms, we are building a more connected financial ecosystem, capable of supporting the future of global trade.”
The platform tested programmable Delivery-versus-Payment (DvP) and cross-border Payment-versus-Payment (PvP) transactions, allowing payments to be conditional or split into installments.
Brazil’s Drex digital currency and Hong Kong’s Ensemble network were used to simulate export settlements, with Chainlink providing the infrastructure to coordinate transactions across jurisdictions.
Immediate gains
The experiment aims to lower costs and better risk management for banks when it comes to trade finance. Exporters, importers and logistics firms can also get paid faster, reducing delays and improving supply chain efficiency.
The platform also allows SMEs to trade directly with foreign buyers and access new lines of credit. This is done by tokenising goods, allowing SMEs to unlock liquidity without relying on banking arrangements or letters of credit.
The aforementioned firms involved plan to build on this success by expanding the solution to other scenarios, including open account trading, where a seller ships goods and receives payment later.
“Programmable international payments, contingent on supply chain updates, significantly simplify operations and unlock substantial efficiency gains through automation,” said Fernando Luis Vázquez Cao, President of Banking and Capital Markets at Chainlink Labs.
“We look forward to expanding our work and developing new capabilities that accelerate the evolution of foreign trade to this new smart contract-enabled paradigm.”
Meanwhile in Europe
While Brazil and Hong Kong are seeing tangible benefits from blockchain-based trade finance, the European Central Bank (ECB) remains focused on its retail CBDC, the Digital Euro, a project still several years from real-world use.
The Digital Euro is designed to complement cash, providing a secure, digital form of the euro for everyday payments.
According to recent ECB analyses, rollout could cost banks between €4bn ($4.59bn) and €5.8bn over a four-year implementation period, with annual operating costs projected at around €320m once launched.
Any final decision depends on legislation from the European Parliament, with pilot testing expected in 2027 and full issuance possibly in 2029.
Despite this investment, critics question the Digital Euro’s practical impact. Other central banks, including in the US and UAE, have focused on stablecoins and tokenised assets for wholesale and cross-border payments, where digital money can deliver immediate improvements.
