China launches first yuan stablecoin in Kazakhstan…"Expanding trade settlement through blockchain"

China has unveiled the world's first regulated offshore yuan-linked stablecoin in Kazakhstan, accelerating yuan internationalization and the spread of blockchain technology. The launch is seen as demonstrating China's strategic intent to create a fissure in the US dollar-centered virtual asset (cryptocurrency) market and to reshape cross-border payment methods.

On the 29th (local time), Reuters reported that AnchorX on the 17th obtained approval from Kazakhstan's financial authorities and issued the virtual asset 'AxCNH' linked to offshore yuan. The stablecoin is based on the technology of Conflux (CFX), a blockchain network supported by the Chinese government.

Yang Guang, Conflux's chief technology officer (CTO), said, "The launch event was conducted quietly, but this could bring a 'butterfly effect' that changes future cross-border payment systems," adding, "Given the spread of US dollar stablecoins, it is hard to imagine that yuan stablecoins will not take hold 20 years from now." He also said, "Issuing offshore yuan stablecoins is possible without the approval of the People's Bank of China, and if it contributes to invigorating trade settlement, the Chinese government will support it."

In recent years, China has actively promoted yuan internationalization to respond to trade frictions with the United States and sanction risks. This stablecoin project is interpreted as part of a strategy to expand payment networks with Belt and Road Initiative (BRI) countries. Yang Guang, the CTO, added, "We were asked by the Chinese government to build a blockchain platform."

Augustine Fan, head of research at SignalPlus, analyzed, "This issuance is another attempt to expand the use of offshore yuan and shows that the Chinese government maintains a positive view of blockchain's potential," adding, "However, regulators will continue a cautious and gradual approach."