Conflux’s Game-Changing Upgrade: China’s L1 Blockchain Sets Sights on Offshore Yuan Stablecoin Dominance
China's homegrown blockchain heavyweight drops upgrade bombshell—with a stablecoin twist.
Conflux just flashed its roadmap for global DeFi domination. The Layer-1 player teased a major protocol overhaul timed with whispers of an offshore yuan-pegged stablecoin play. Talk about syncing monetary policy with blockchain rails.
When Beijing sneezes, crypto catches cold—but Conflux keeps building quarantine zones. Their 'Great Firewall-to-DeFi' pipeline just got juicier with this dual-pronged move. Upgrade the tech stack? Check. Court institutional capital with regulatory-friendly stablecoins? Double check.
Smart money's watching how this plays out. Most chains beg for adoption—Conflux might just have the PBOC on speed dial. Either way, bankers will still take 30% fees while pretending blockchain 'isn't ready yet.'
Proposed Yuan Stablecoin Aims to Power BRI Cross-Border Payments
The proposed stablecoin is intended to facilitate cross-border payments and commerce among BRI participants, leveraging blockchain infrastructure while remaining aligned with Chinese regulatory preferences.
The MOVE comes amid broader state-level discussions on the role of stablecoins and digital currencies in reshaping the global financial system.
Conflux also unveiled plans for Conflux 3.0, the network’s latest upgrade slated for release in August.
With a reported transaction processing speed of up to 15,000 TPS (transactions per second), the upgrade is positioned to enable large-scale settlement of real-world assets and cross-border payments.
The market responded quickly. Conflux’s native token, CFX, surged 57% in the past 24 hours, reaching $0.22 with a market cap of $1.1 billion, according to The Block.
Meanwhile, Eastcompeace’s stock rallied 10% on the Shenzhen exchange, hitting the daily limit.
Earlier this month, Conflux shared that AnchorX was developing “AxCNH,” a stablecoin backed by the offshore yuan and supported by Conflux’s infrastructure.
Daily Top crypto Gainer – July 21@Conflux_Network $CFX | +42.7% (24h) | $0.2143
Why It’s Pumping:
CFX exploded on China-backed RMB stablecoin news, upgrade hype, and a brutal short squeeze.
Key Drivers:
• RMB Pilot: Announced at Shanghai event with AnchorX and China… pic.twitter.com/Ne6o0pb0xE
The initiative aligns with comments from People’s Bank of China Governor Pan Gongsheng, who said in June that stablecoins and CBDCs are transforming global payments.
Hong Kong’s regulatory landscape is also moving in parallel. A new licensing regime for stablecoin issuers is set to begin on August 1, adding further legitimacy to the sector.
Major Chinese firms like JD.com and ANT Group are reportedly lobbying for approval to issue yuan-backed stablecoins abroad.
Former Chinese Finance Official Pushes Yuan Stablecoins
Last week, former Deputy Finance Minister Zhu Guangyao urged integrating yuan-backed stablecoins into China’s top-level financial policy, citing the growing global role of dollar-pegged stablecoins.
Speaking at a closed-door seminar, Zhu warned that U.S. dollar stablecoins serve as an extension of U.S. monetary dominance, calling them the “third phase” of the Bretton Woods system.
He pointed to explosive stablecoin transaction volumes in 2024, surpassing Visa and Mastercard, and emphasized US efforts to consolidate regulatory control through new legislation like the Lummis–Gillibrand Act.
The move, Zhu argued, enhances the dollar’s global reach and liquidity while limiting space for non-dollar stablecoin growth.
Zhu proposed that China treat Hong Kong as a regulatory sandbox, develop both offshore and domestic yuan stablecoins, and monitor how the U.S. enforces stablecoin laws, especially against foreign issuers.
He stressed that yuan stablecoins could diversify global payment systems and support currency internationalization without risking capital account liberalization.
