Categories: Blockchain

New decentralized stablecoin in China targets international trade

With financial authorities around the world growing concerns about stablecoin regulation, a jurisdiction in China is preparing to test a new yuan-linked stablecoin for international trade.

Chris Banbury, global leader of the license-free blockchain project Conflux, told Cointelegraph on Sept. 21 that the company will provide its technology to introduce a single yuan (RMB) stablecoin.

“This is just tied to the digital yuan without any formal integration,” noted Banbury, adding that the project will look into how the token is traded with other currencies.

The new stablecoin project will facilitate international trade in Shanghai’s Lin Gang Special Zone after the Chinese government granted a Free Economic Zone license in July to explore the free trade of human stablecoins overseas.

Banbury noted, “Although the use case for the offshore renminbi stablecoin has been approved by the governments of China and Shanghai, the pilot program is not endorsed or affiliated with the government.

Unlike popular stablecoins like Tether (USDT) and USD Coin (USDC), the upcoming offshore yuan stablecoin will not be a private stablecoin as it is completely decentralized, Banbury said. The CEO said the new stablecoin will be named “outside of the RMB stablecoin” as its functionality is limited to global trading:

“The term ‘overseas’ refers to the use of the renminbi for international transactions – not domestic transactions. The digital yuan is used for domestic purposes only. Therefore, overseas yuan is not “overseas yuan”. A domestic digital yuan monitored by the People’s Bank of China.

Related: Chinese banks are trying out the digital yuan to sell mutual funds and insurance

Banbury said foreign yuan stablecoins are held through the Shanghai ShuTu Blockchain Research Institute, a branch of the Conflux Tree Graph Institute for blockchain research and development. He added that the stablecoin hasn’t received a special ticker yet as the development team is still setting a start date.

As one of the first countries in the world to adopt a CBDC, China continued to crack down on the mining and trading of cryptocurrencies, with local authorities closing many mining farms and ceasing cryptocurrency trading this year.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

25 minutes ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

2 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

3 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

5 hours ago

This website uses cookies.