Shanghai / Hong Kong, September 29 (Reuters) – The launch of the first Stablecoin in Yuan with regulated offshore in the world in Kazakhstan this month is part of the Beijing plan to use blockchain technology for cross -border trade, a frame of a blockchain network supported by the Chinese government.
Yang Guang, chief director of Shanghai Technology in Conflux, who was involved in the launch, said that the event is discreet, he could have a “butterfly effect” with a potential for remoding cross -border payment.
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AXCNH, a cryptocurrency set at the Chinese Offshore Yuan, was launched on September 17 by the Fintech company based in Hong Kong, Anchorx, supported by Conflux technology, after having obtained a license in Kazakhstan, the largest economy in Central Asia.
This decision indicates China’s intention to withdraw to the domination of the dollar in the cryptographic space and reflects the push with several components for the internationalization of the Yuan, which also includes the promotion of the Central Bank Digital Yuan.
China has long sucked in the Yuan to reach the world monetary status, reflecting its weight as a global economy n ° 2. However, its tight capital controls and its annual sales surpluses of billions of dollars worked against this objective.
“As the stablescoins of the US dollar grow, can you imagine a digital world in 10, 20 years old, where there is no room for the Chinese Yuan on blockchains? Of course not,” a computer scientist from the University of Tsinghua told Reuters.
Yang said that the issuance of stablescoins in yuan offshore did not theoretically need approval from the Chinese central bank, and that Beijing would support such a decision if it was used to lubricate the cross -border trade.
“As a major power, China cannot miss any potentially promising technology and will invest in all directions, including blockchain,” he said.
“ Positive point of view ”
Stablecoin is a type of cryptocurrency generally set for a fiduciary currency like the US dollar. It is considered a cross -border payment tool at low cost and effective, as well as a bridge connecting traditional finances and digital assets.
Conflux has the government’s mandate to build a blockchain platform connecting the countries of the Belt and Road (BRI) initiative, the Phare International Cooperation Strategy of China, said Yang.
Hong Kong, which has established a regulatory regime for Stablescoins, has not yet given licenses to issuers. In China, cryptocurrency trading has been prohibited since 2021.
Anchorx declared on his website that the new Yuan Stablecoin Yuan was a profitable and effective payment alternative to traditional finance, and would improve cross -border transactions between the BRI countries and the Entities in Offshore China.
The company, supported by Conflux and the Chinese investment company HONY CAPITAL, said that it has issued stablecoin after obtaining a license of financial regulators in Kazakhstan, a BRI participant who has China as its largest trading partner.
For China, “the Stablecoin initiative is another place or another trial to push the use of Yuan Offshore,” said Augustine Fan, information manager at Signalplus, a digital active trading platform.
He also shows that “the government is likely to maintain a positive vision of the underlying potential of blockchain technology,” said Fan, adding that regulators will adopt a measured and cautious approach.
Report by Shanghai Newsroom; Edition by Sameet Chatterjee and Stephen Coates
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