Conflux Network Eyes Offshore Yuan Stablecoin For BRI Project

Leading Chinese-based Layer 1 blockchain Conflux Network is eyeing on the release of a stablecoin, which would be pegged to the offshore Chinese Yuan.

Conflux made the announcement during the three-day conference, where the company unveiled the new AxCNH stablecoin in collaboration with fintech firm Anchor X and information technology security firm Eastcompeace.

The new stablecoin aims to serve the countries serving the Belt and Road Initiative (BRI). The BRI's project is China's effort at promoting new economic ties between Asia, Africa, and Europe through land and maritime trade routes.

China has signed BRI memoranda of understanding with more than 140 countries, including Singapore, Indonesia, Malaysia and Kazakhstan.

Market reaction to the news was immediate: Conflux’s native token, CFX, surged 57% to $0.22, bringing its market capitalization to $1.1 billion.

Meanwhile, Eastcompeace Technology’s stock saw a 10% leap, hitting the Shenzhen exchange’s daily limit of 20.33 yuan.

Launching Conflux 3.0: Scalable, Cross-Border Settlement

At the same time, Conflux is also releasing the third reiteration of its public network, with promises of major enhancement to the network.

The company claims that that newly introduced Conflux 3.0 can process more than 150,000 transactions per second and natively support onchain artificial intelligence calls.

The Conflux 3.0 network is set to go live in August, with the upgrade also expected to enable large-scale settlement of cross-border payments and real-world assets.

Conflux has also recently partnered with crypto wallet TokenPocket to promote the stablecoin to its users.

Growing Momentum for Offshore Yuan Stablecoins

Conflux's stablecoin is the latest entry in the Chinese stablecoin race. Just early this month, Hong Kong had attracted more than 40 applications ahead of its stablecoin licensing regime, which is set to commence on August 1.

These includes major firms such as JD.com Ant Group and Circle, who are reportedly lobbying the central bank for approval to issue offshore yuan-backed stablecoins, signaling intensifying competition in the global stablecoin sector.

Mainland China is one of the countries with the most repressive approaches to cryptocurrencies. However, recent reports have indicated that the country is starting to reconsider its stance on stablecoins.

This comes after Pan Gongsheng, governor of the People's Bank of China, who in June acknowledged that both stablecoins and central bank digital currencies are fundamentally reshaping global payment infrastructure.

Earlier this month, the Shanghai State-owned Assets Supervision and Administration Commission even held a meeting to discuss strategic responses to stablecoin.

At the meeting, the regulator's director, He Qing, called for greater sensitivity to emerging technologies and enhanced research into digital currencies.