Conflux Blockchain's Yuan Stablecoin Plans Unveiled

Conflux Network, a prominent Chinese Layer 1 blockchain, is set to unveil Conflux 3.0 and has announced plans to issue a stablecoin linked to the offshore yuan as China investigates the feasibility of yuan-based stablecoins. In an official media report from Sunday posted on the Shanghai government's website, Conflux revealed its collaboration with fintech company AnchorX and Shenzhen-listed Eastcompeace Technology to create offshore yuan-pegged stablecoins. The three entities plan to release these stablecoins for use in countries involved in the Belt and Road Initiative (BRI), China's key international development program aimed at enhancing economic ties and market integration. The BRI has established agreements with over 140 nations, including Singapore, Indonesia, Malaysia, and Kazakhstan. In addition to the stablecoin plans, Conflux is excited about the imminent launch of Conflux 3.0, set to go live in August. The upgrade promises an impressive processing capacity of 15,000 transactions per second (TPS) and aims to facilitate large-scale settlements for cross-border payments and real-world asset transactions. The market responded positively to this news, and at the time of writing, Conflux's CFX token had surged 57% in the last 24 hours, reaching $0.22, with a market cap of $1.1 billion. Meanwhile, Eastcompeace Technology saw a stock increase of 10%, hitting the exchange's daily limit with shares trading at 20.33 yuan ($2.83) on Monday. In recent discussions, Conflux mentioned in a blog post that AnchorX is considering launching 'AxCNH', a stablecoin pegged to the offshore yuan with the technical support of the Conflux network. This interest in stablecoins coincides with statements made by China's central bank chief, Pan Gongsheng, in June, acknowledging that stablecoins and central bank digital currencies are transforming the global payment landscape. As Hong Kong prepares to implement its licensing regime for stablecoin issuers on August 1, the discussion around offshore yuan stablecoins has gained momentum. Chinese tech firms like JD.com and Ant Group are advocating for the central bank's approval of these stablecoins as the global competition heats up. While China maintains its prohibition on cryptocurrency trading and mining, Hong Kong adopts a more accommodating stance with a licensing framework for crypto exchanges.