China Prepares For A Global Stablecoin Race
Is China Preparing for a New Stablecoin Race?
Recent reports suggest that the Chinese government may be supporting the development of stablecoins pegged to the Chinese yuan (CNY) for cross-border transactions. This move is seen as a direct effort to compete with the United States in the race for global currency dominance.
AxCNH – China’s New Stablecoin Initiative
China has recently launched AxCNH, the world’s first offshore yuan-pegged stablecoin, approved by Kazakhstan’s financial regulators. The project is issued by AnchorX, a Hong Kong-based fintech company, and powered by the Conflux blockchain, one of the few public blockchains officially approved by the Chinese government.
According to Yang Guang, CTO of Conflux, AxCNH is designed to internationalize the yuan and improve cross-border payment efficiency, especially among countries participating in the Belt and Road Initiative (BRI). At the same time, the stablecoin aims to reduce risks associated with U.S. dollar sanctions.
The Belt and Road Initiative – A Foundation for AxCNH
Launched in 2013, the BRI is China’s global strategy to strengthen infrastructure, trade, and economic cooperation across Asia, Europe, and Africa. With over $1.3 trillion invested and more than 150 participating countries, China is expanding its influence in energy, technology, and finance. Integrating stablecoins into this ecosystem could significantly boost cross-border trade.
A Rapidly Growing Stablecoin Market
This development comes as the global stablecoin market is expanding at a fast pace. Since the U.S. passed the GENIUS Act in July, the stablecoin market capitalization has surged from $267.2 billion to $309.4 billion in just over 70 days, marking a 15.8% increase.
China’s entry with AxCNH could further accelerate market growth and set the stage for a new stablecoin race between China and the United States.
Conclusion
The launch of AxCNH signals China’s ambition to strengthen its global financial influence. If yuan-pegged stablecoins gain wider adoption, they could emerge as a direct challenger to U.S. dollar-backed stablecoins.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.