Conflux Network to Launch Offshore Yuan-Pegged Stablecoin for BRI Nations

Conflux Network, a prominent Layer 1 blockchain based in China, has announced its plans to support the issuance of an offshore yuan-pegged stablecoin. This initiative is part of a broader strategy to enhance cross-border payments and financial inclusion, particularly within the framework of the Belt and Road Initiative (BRI). The BRI is a significant international development strategy aimed at fostering market integration and establishing new economic ties. Over 140 countries, including key economic players, have signed memoranda of understanding with China under this initiative.

The stablecoin, which will be pegged to the offshore yuan, is being developed in partnership with fintech firm AnchorX and Shenzhen-listed Eastcompeace Technology. This collaboration aims to create a stablecoin that can be used for transactions in countries participating in the BRI, thereby facilitating smoother and more efficient trade and financial transactions. The stablecoin, named "AxCNH," is designed to be pegged 1:1 to the offshore yuan, leveraging the technical support of the Conflux network.

Conflux Network also unveiled plans for the upcoming launch of Conflux 3.0, scheduled to go live in August. This upgrade is expected to significantly enhance the network's processing capability, with an advanced processing speed of 15,000 transactions per second (TPS). The improved network is set to enable large-scale settlement of cross-border payments and real-world assets, further bolstering its role in the global financial ecosystem.

The development of an offshore yuan-pegged stablecoin aligns with broader trends in the global payment infrastructure. Chinese central bank chief Pan Gongsheng recently acknowledged that stablecoins and central bank digital currencies are reshaping the global payment landscape. This recognition underscores the growing importance of digital currencies in international finance and trade.

The initiative by Conflux Network and its partners is part of a broader effort to explore the potential of yuan stablecoins. Chinese tech giants, including JD.com and Ant Group, have been actively lobbying China's central bank to approve offshore yuan-based stablecoins. This move is seen as a strategic response to the intensifying global stablecoin race, where various countries and companies are vying to establish their digital currencies as leading players in the market.

While China maintains a strict ban on crypto trading and mining, the region has adopted a more open approach, implementing a licensing regime for crypto exchanges. This regulatory environment is conducive to the development and deployment of stablecoins, making a key region for such initiatives. The licensing regime for stablecoin issuers, set to take effect on August 1, further highlights the region's commitment to fostering innovation in the digital currency space.

The launch of the offshore yuan-pegged stablecoin by Conflux Network represents a significant step forward in the integration of blockchain technology with traditional financial systems. By leveraging the Conflux network's advanced capabilities and the strategic partnerships with AnchorX and Eastcompeace Technology, this initiative aims to enhance trade efficiency, reduce costs, and boost financial inclusion in BRI nations. The upcoming Conflux 3.0 upgrade is expected to further strengthen the network's capabilities, making it a more robust platform for cross-border payments and real-world asset settlements.