Belt and Road Initiative Payments Enhanced with Introduction of Stablecoin by Conflux
In a significant move, Chinese blockchain firm Conflux has launched Conflux 3.0, a public network capable of processing over 15,000 transactions per second. This technological advancement is part of a broader strategic effort by China to promote a compliant, programmable yuan-backed stablecoin usable offshore.
Following a meeting to assess strategic actions concerning digital currencies, the head of an agency reportedly advocated for increased attentiveness to technological innovation and deeper research into the evolving landscape of digital assets. This push for innovation is evident in Conflux's latest offering, which is positioning itself at the forefront of China's evolving blockchain policy environment.
Conflux has introduced a new stablecoin pegged to the offshore Chinese yuan as part of its network. This stablecoin, developed in collaboration with fintech company AnchorX and security technology provider Eastcompeace, is being positioned to serve Chinese enterprises operating offshore and nations aligned with China's Belt and Road Initiative (BRI).
Hong Kong has seen a surge in stablecoin license applications, with around 40 companies, including JD.com, Ant Group, and Circle, seeking regulatory approval. The regulatory responsibility for stablecoin issuers under Hong Kong's new digital asset policy known as LEAP will begin on August 1.
The latest initiatives by Conflux suggest a strategic shift toward state-controlled, yuan-backed stablecoins with a particular focus on offshore issuance to expand the yuan's international use while maintaining capital controls. The collaboration between Conflux, AnchorX, and Eastcompeace involves development of an offshore yuan-backed stablecoin that aligns with this broader strategy.
TokenPocket, a cryptocurrency wallet provider, has announced a partnership with Conflux and AnchorX to promote the offshore yuan-backed stablecoin to its user base. The stablecoin will explore opportunities in real-world asset applications, indicating a focus on practical utility beyond digital currencies.
AxCNH, a stablecoin developed by AnchorX, recently received regulatory approval from Kazakhstan's Astana Financial Services Authority. It is unclear whether the stablecoin tied to Conflux is the same project or an entirely separate initiative.
Operational and regulatory challenges remain, but these projects are seen as tools to increase yuan’s global influence gradually and serve cross-border trade and fintech. The Shanghai branch of the State-owned Assets Supervision and Administration Commission has shown indications of a potential shift in China's approach to stablecoins.
The initiative aims to enhance global commerce by constructing roads, ports, railways, and digital infrastructure across various continents, further solidifying China's position in the global economy. The status of stablecoin projects in China is characterized by a strategic shift toward state-controlled, yuan-backed stablecoins with a particular focus on offshore issuance to expand the yuan's international use while maintaining capital controls.
In sum, the Conflux, AnchorX, and Eastcompeace stablecoin initiative is an active part of China's broader strategic effort in 2025 to promote a compliant, programmable yuan-backed stablecoin usable offshore, supported by Hong Kong’s regulatory framework, to challenge dollar dominance and promote renminbi internationalization within tightly controlled parameters.
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