Conflux Price Prediction: China Shifts to "Offshore Renminbi Stablecoin" to Counter the Dollar, CFX Soars 40% Showcasing Astonishing Confidence in Asia

Conflux (CFX) surged over 40% in a single day, reporting 0.2643 USD in early European trading today (29). China is shifting towards "offshore RMB stablecoins" to counter the US dollar. As a China Layer 1 blockchain supported by the Shanghai municipal government, Conflux Network has partnered with fintech company AnchorX and Shenzhen-listed company Dongxin Pinghe Technology to create a stablecoin pegged to the offshore RMB.

(Source: CoinMarketCap)

For many years, China has been committed to making the digital yuan an important player on the global stage. However, despite high-profile pilot programs and strong government support, the digital yuan has not gained the international popularity that China expected.

At the same time, China is quietly changing direction, with blockchain startups experimenting with a yuan-backed stablecoin — which could serve as a backup plan to expand the global influence of the yuan — while Washington is taking action to pave the way for the overseas expansion of dollar-pegged stablecoins.

In mid-July, Chinese financial news media reported that Conflux Network has partnered with fintech company AnchorX and Shenzhen-listed company Dongxin Peace Technology to create a stablecoin pegged to the offshore renminbi, namely AxCNH.

These stablecoins are expected to circulate in countries participating in China's "Belt and Road" initiative, which is a massive international development project covering more than 140 countries, including Singapore, Indonesia, Malaysia, and Kazakhstan.

Conflux Network Chief Technology Officer Guang Yang stated that Conflux 3.0 aims to "address the critical security and audit requirements for stablecoin adoption by focusing on compatibility."

He stated: "As part of China's key national R&D program, Conflux is also trialing cross-border stablecoin payment applications in countries along the 'Belt and Road' initiative, paving the way for real-world Web3 utility."

AnchorX product manager Jozey Zhou explained that as part of the collaboration, AxCNH aims to "simplify cross-border payments and trade for countries along the Belt and Road."

He added, "Although AxCNH does not provide returns, it focuses on stability and transparency. An independent audit is in progress and will be publicly disclosed once completed."

Complex Environment

In light of China's continued ban on cryptocurrency trading and mining, while Hong Kong adopts a more open attitude by implementing a stablecoin licensing system starting August 1, this measure stands out particularly. As global competition intensifies, it is reported that large tech companies like JD.com and Ant Group are also urging Beijing to allow offshore renminbi-based stablecoins.

In China, establishing any blockchain-related project has never been an easy task. In May 2023, China detained the team behind the CNHC Group (later renamed Trust Reserve).

The CNHC Group is the issuer of the offshore RMB-pegged stablecoin CNHC and the HKD-pegged stablecoin HKDC, both of which were launched on the Conflux platform.

The group is suspected of illegally issuing stablecoins and engaging in financial misconduct, and its Pudong office has been sealed off by judicial authorities. Since then, no formal charges or verdicts have been announced.

A simpler alternative

While China continues to expand the practical application of the digital yuan, the United States seems to be following a different path, placing greater emphasis on privately issued stablecoins backed by the dollar.

In late July, the House of Representatives passed three bills related to cryptocurrency, aimed at clarifying regulatory provisions in the field. The most significant of these is the "GENIUS Act," which establishes federal rules for stablecoins pegged to the U.S. dollar.

The transformation of U.S. President Trump has not gone unnoticed by China. In recent weeks, even media related to the Chinese government have begun urging policymakers to pay more attention to the stablecoin sector. The article warns that waiting too long may mean missing out on a "golden opportunity" to expand the global influence of the Renminbi.

Experts cited in the article believe that supporting and regulating RMB-based stablecoins may be more practically feasible than solely relying on central bank-issued digital currencies.

Overall, these signals indicate that China is quietly adjusting its digital currency strategy. The digital yuan may still be at the heart of Beijing's ambitions, but the yuan-backed stablecoins—especially those issued offshore—may represent a more flexible and globally acceptable alternative.