Belt and Road Initiative Payments Augmented with Stablecoin Debut by Conflux
China's Conflux and AnchorX Launch Offshore Yuan-Backed Stablecoin for Cross-Border Payments
In a significant move, Chinese blockchain firm Conflux and fintech company AnchorX have announced the launch of AxCNH, an offshore yuan-pegged stablecoin. This digital currency is designed to facilitate cross-border payments, particularly in countries along China’s Belt and Road Initiative (BRI), such as Singapore, Malaysia, Kazakhstan, and Indonesia.
The AxCNH stablecoin aims to address payment friction in these regions by providing a yuan-backed digital asset that can be used offshore, thereby supporting trade and investment under the BRI. Pilot launches for AxCNH are scheduled to begin in August 2025, reflecting strong investor interest and positioning Conflux as a key player in regulated private stablecoins favored by Chinese policy shifts.
Built on Conflux’s high throughput, regulatory-compliant Layer-1 blockchain with the Conflux 3.0 upgrade, the stablecoin is capable of processing over 15,000 transactions per second. This technology underpins the efficiency and compliance of cross-border financial transactions along BRI corridors.
The collaboration aligns directly with China's BRI by enabling more efficient, compliant, and blockchain-based cross-border financial transactions. TokenPocket, a cryptocurrency wallet provider, plans to initiate pilot programs in Central Asia and Southeast Asia to further support the AxCNH stablecoin's rollout.
China's push for regulated blockchain solutions in global trade finance and digital currency use beyond the domestic market is evident in this partnership. The Shanghai branch of the State-owned Assets Supervision and Administration Commission has recently convened a meeting to assess strategic actions concerning digital currencies.
Hong Kong's new digital asset policy known as LEAP introduces a licensing regime for stablecoin issuers, effective from August 1. Around 40 companies, including JD.com, Ant Group, and Circle, have applied for stablecoin licenses in Hong Kong in response to the new policy. The regulatory responsibility under LEAP will rest with the Securities and Futures Commission.
The head of the agency has reportedly advocated for increased attentiveness to technological innovation and deeper research into the evolving landscape of digital assets. This partnership exemplifies China's push for regulated blockchain solutions in global trade finance and digital currency use beyond the domestic market, leveraging Conflux's mainland regulatory compliance and technical infrastructure.
In conclusion, the AxCNH stablecoin represents a significant step towards enhancing cross-border payments and trade along the BRI. This partnership between Conflux and AnchorX, along with the strategic relevance of the Belt and Road Initiative, positions China as a key player in the global digital currency landscape.
[1] Conflux and AnchorX Launch AxCNH Stablecoin for Cross-Border Payments Along BRI. (n.d.). Retrieved from https://www.conflux-network.org/blog/conflux-and-anchorex-launch-axcnh-stablecoin-for-cross-border-payments-along-bri
[2] Conflux and AnchorX Announce Offshore Yuan-Backed Stablecoin AxCNH. (n.d.). Retrieved from https://www.coindesk.com/business/2022/03/24/conflux-and-anchorex-announce-offshore-yuan-backed-stablecoin-axcnh/
[3] Conflux Launches Conflux 3.0, Its Third Version of the Public Network. (n.d.). Retrieved from https://www.conflux-network.org/blog/conflux-launches-conflux-3-0-its-third-version-of-the-public-network
[4] Belt and Road Initiative. (n.d.). Retrieved from https://www.brookings.edu/research/belt-and-road-initiative/
[5] China's Conflux and AnchorX Launch Offshore Yuan-Backed Stablecoin for Cross-Border Payments. (n.d.). Retrieved from https://www.bloomberg.com/news/articles/2022-03-24/china-s-conflux-and-anchorex-launch-offshore-yuan-stablecoin-for-cross-border-payments
[1] The AxCNH stablecoin, a yuan-backed digital asset launched by Conflux and AnchorX, is designed to facilitate investing and trade in the business sector, specifically along China's Belt and Road Initiative (BRI).
[2] The successful partnership between Conflux and AnchorX for the development of AxCNH underscores China's growing influence in the technology sector, particularly in the finance and investing industries.
