Conflux Network is allowed to experiment with offshore yuan stablecoins in China, aiming to issue $42.1 million worth by year’s end. Stablecoins are becoming more popular for faster settlements and lower costs. China sees stablecoins as a way to advance the internationalization of the yuan.

Regulations in the US and Hong Kong are boosting mainstream acceptance of stablecoins. China’s attitude shifted after the US embraced digital assets. Conflux founder Fan Long believes China is entering a phase of action on stablecoins to shape the rules and avoid falling behind.

Hong Kong company AnchorX launched an offshore yuan stablecoin named AxCNH using Conflux’s blockchain technology. The stablecoin will facilitate cross-border payments for Chinese enterprises and Belt and Road Initiative countries. Conflux aims to solve problems for Chinese companies using stablecoins due to sanctions or inconvenience.

Conflux, established in 2018, is a Shanghai-based blockchain company aiming to be regulatory-compliant in China. The company’s background has raised scrutiny from the US amid bilateral tensions. Offshore yuan stablecoins are a major focus for Conflux, supporting companies like AnchorX in issuing stablecoins.

This article originally appeared in the South China Morning Post (SCMP). Conflux is paving the way for offshore yuan stablecoins in China, aiming to solve problems for Chinese companies and advance the internationalization of the yuan. Conflux faces scrutiny from the US amid worsening bilateral relations.

Read more at Yahoo Finance: Conflux gets green light to trial offshore yuan stablecoins as China eases crypto stance