Chinese blockchain Conflux launches offshore yuan stablecoin

Chinese blockchain Conflux announced a third version of its public network and introduced a new stablecoin backed by offshore Chinese yuan.

According to a report from the Shanghai municipal government on Sunday, Conflux announced the developments during a three-day conference over the weekend. At the event, Conflux unveiled a partnership with fintech firm AnchorX and information technology security firm Eastcompeace to support the launch of an offshore yuan-backed stablecoin.

The news follows AnchorX receiving in-principle approval for its yuan-pegged stablecoin AxCNH by Kazakhstan’s regulator, the Astana Financial Services Authority, in late February. It is unclear whether Conflux’s stablecoin is AxCNH or a separate project, and the involved companies had not responded to Cointelegraph’s inquiries by publication.

Conflux also partnered with crypto wallet TokenPocket to promote the stablecoin to its users. In an X announcement, the wallet’s team wrote that the firm will launch pilot projects in Central Asia, Southeast Asia and other key regions in partnership with Conflux and AnchorX.

The team also announced the introduction of Conflux 3.0, which the company said can process more than 15,000 transactions per second and natively supports onchain artificial intelligence agent calls.

Over the weekend, the price of Conflux’s native CFX token surged from $0.1055 on Sunday to $0.2285 at the time of writing, a gain of nearly 116.6%.

Belt and Road use cases targeted

The new stablecoin aims to serve offshore Chinese entities and countries involved in China’s Belt and Road Initiative. The project will also explore real-world asset applications, according to Conflux.

The Belt and Road Initiative is a global infrastructure and economic strategy launched by China in 2013 as part of efforts to increase the country’s international influence. The project aims to connect Asia, Africa and Europe through land and maritime trade routes, promoting global trade and investment, which includes building roads, railways, ports and digital infrastructure.

Chinese stablecoin race heats up

Conflux’s stablecoin is the latest entry in the Chinese stablecoin race. As reported by the Chinese version of Cointelegraph earlier this month, Hong Kong recently attracted as many as 40 stablecoin license applications.

The firms behind the applications include giants such as JD.com, Ant Group and Circle. The report follows Hong Kong’s government introducing a crypto regulatory framework known as “LEAP.”

The new framework includes a licensing regime for stablecoin issuers starting Aug. 1, which “will facilitate the development of real-world use cases.” The issuance of licenses will be overseen by Hong Kong’s Securities and Futures Commission.

Mainland China is known for having one of the most restrictive approaches to cryptocurrencies. However, recent reports indicate that the country is reconsidering its stance on stablecoins. Earlier this month, the Shanghai State-owned Assets Supervision and Administration Commission held a meeting to discuss strategic responses to stablecoins.

After the meeting, the regulator’s director, He Qing, called for “greater sensitivity to emerging technologies and enhanced research into digital currencies.”

Magazine: China threatened by US stablecoins, G7 urged to tackle Lazarus Group: Asia Express