Conflux Network, which claims to be the only regulatory-compliant public blockchain operator in mainland China, has been allowed to experiment with offshore yuan stablecoins as Beijing seeks to secure a position in the new global financial order, according to its founder.
Conflux had received a tacit green light from Chinese authorities to explore the development of offshore yuan stablecoins, and was aiming to have up to 300 million yuan (US$42.1 million) worth of tokens issued on its blockchain by the end of this year, its founder Fan Long said in an interview on Tuesday.
“Previously, we weren’t given such opportunities,” Long said. “But now that we are, we hope to build up a certain volume and more importantly, begin to address some real problems.”
Stablecoins are cryptocurrency tokens designed to maintain a fixed value, which typically matches fiat currencies such as the US dollar. Initially popular among crypto traders, stablecoins have been playing a bigger role in trade because they allow for faster settlements and lower costs.
Regulations introduced this year, including the Genius Act in the US and a new stablecoin licensing regime in Hong Kong, are set to further boost mainstream acceptance for the tokens, and Chinese experts have called for Beijing to develop stablecoins pegged to offshore yuan to advance internationalisation of the Chinese currency.
