World's First Regulated Yuan-Linked Stablecoin Launched in Kazakhstan
Hong Kong-based fintech firm AnchorX has launched the world's first regulated offshore yuan-linked stablecoin, AxCNH, in Kazakhstan. Backed by blockchain infrastructure from Conflux and issued by AnchorX, this stablecoin is pegged to the offshore Chinese yuan and became operational on September 17. The launch is seen as a significant step in China's efforts to promote the internationalisation of the yuan and reduce reliance on the US dollar in global digital finance.
The stablecoin AxCNH is supported by blockchain infrastructure provided by Conflux, a company with a government mandate that enabled the launch, linking it to the Belt and Road Initiative (BRI). The organisation that issued the AxCNH stablecoin is Axia Net Holdings (Axia Net), based in Singapore. China's government views blockchain technology positively but maintains a cautious regulatory approach.
AnchorX, the issuer of AxCNH, aims to facilitate cross-border transactions between BRI member nations and offshore Chinese entities. The offshore yuan stablecoin could become a critical tool in advancing China's international financial agenda. Issuing offshore yuan-backed stablecoins is a new method China is exploring to promote wider usage of its currency globally. The launch of AxCNH is seen as a potential long-term development in structuring global cross-border payments.
The introduction of AxCNH, the world's first regulated offshore yuan-linked stablecoin, marks a substantial stride in China's financial ambitions. By leveraging blockchain technology and stablecoins, China seeks to reduce its dependence on the US dollar and expand the global reach of the yuan. As the stablecoin becomes operational, it will be intriguing to observe its impact on cross-border transactions and China's broader financial goals.
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