The China-based Layer-1 Blockchain, Conflux Network, announced at its event in Shanghai its collaboration with AnchorX and Eastcompeace Technology to develop a stablecoin indexed to the offshore Yuan. This stablecoin aims to accelerate cross-border payments and real-world asset transfers in Belt and Road Initiative (BRI) countries. Notably, Conflux 3.0 is set to launch in August, offering a promised transaction capacity of 15,000 TPS. Following the announcement, the altcoin CFX saw a surge, with its price rising by over 100%, reaching $0.2405. Eastcompeace’s shares in Shenzhen also experienced a 10% daily limit increase.
Conflux’s Offshore Yuan-Backed Stablecoin Initiative
AnchorX is testing a stablecoin, called “AxCNH,” pegged 1:1 to the offshore yuan using the Conflux infrastructure. This planned issuance aims to boost digital yuan adoption in BRI member markets such as Singapore, Malaysia, Kazakhstan, and Indonesia. In June, the President of China’s Central Bank, Pan Gongsheng, acknowledged that stablecoins have transformed the global payment system.
With Hong Kong’s stablecoin licensing regime effective from August 1st and lobbying by JD.com and Ant Group for offshore yuan-based solutions, this move elevates its regional significance. While cryptocurrency trading and mining remain banned in China, Hong Kong’s more relaxed approach offers additional support to the Conflux ecosystem.
The upcoming Conflux 3.0 upgrade in August is designed to support high-volume payments with its 15,000 TPS capacity. The development team highlights that the update will not only boost performance but also facilitate the integration of real-world assets and cross-border transactions onto the Blockchain. The Layer-1 architecture will provide additional modules for integration with state-backed digital currency projects.
Sharp Rise in Altcoin CFX’s Price
Before the launch, the sharp increase in the price of CFX altcoin reflects investor confidence in the new version. With a market value of $1.1 billion, Conflux stands out among major Asia-based Blockchain projects.
The peak of Eastcompeace shares traded in Shenzhen indicates that the technological partnership has impact even in traditional capital markets.
