China Advances with Its Stablecoin: Does the Surge in Conflux Crypto Indicate Smart Money Gathering?
China is edging closer to the exploration of stablecoins, a development that has the potential to transform global payment systems and elevate the yuan’s presence on the international stage. Reports indicate that the State Council is currently evaluating a strategic plan that would establish goals for utilizing a yuan-backed stablecoin, designate responsibilities for domestic regulatory bodies, and outline regulations to mitigate risks. High-ranking officials are anticipated to convene this month to deliberate on the internationalization of the yuan and stablecoin strategies — a significant departure from the 2021 prohibition on digital currency trading and mining, and an event that has caught the attention of projects like Conflux crypto, which aim to be regulatory-friendly blockchains in China.
JUST IN:
China shifts focus to stablecoins following the U.S. passing the GENIUS Act.
Beijing is in the process of drafting a roadmap for a yuan-backed stablecoin, with pilot programs set to launch offshore in
This marks a significant turning point: previously fixated solely on the e-CNY CBDC (for domestic purposes), China is now considering stablecoins… pic.twitter.com/JLqSmbz5xD— Jessica Gonzales (@lil_disruptor) August 28, 2025
Beijing has long harbored ambitions for the yuan to compete with the U.S. dollar and euro in the realm of global transactions. However, despite China’s extensive trade surpluses, rigid capital controls have limited its global impact.
Stablecoins are digital assets that are pegged to traditional currencies, facilitating instant, cost-effective, and borderless transactions. For a nation that has historically upheld strict capital controls, stablecoins provide both opportunities and challenges: they could simplify cross-border yuan transactions, yet regulatory bodies will require measures to prevent capital outflow and ensure financial stability.
The yuan’s share of worldwide payments has recently dwindled to approximately 2.88%, highlighting why Beijing is keen to find methods to enhance the international utilization of its currency.
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Beijing’s Stablecoin Roadmap Could Redefine Yuan Internationalisation, Challenge U.S. Dollar Dominance, and Spark a New Era for China-Compliant Blockchains Like Conflux Crypto
In light of this policy shift, Conflux (CFX) crypto has seen a significant rise. Since July, CFX has surged following two announcements: a proposal for an offshore yuan-pegged stablecoin developed in collaboration with fintech partners, and the launch of Conflux 3.0, which promises significantly faster throughput (up to 15,000 TPS) and improved cross-border settlement capabilities.
Trading volume jumped from below $60 million to over $1.7 billion within just a few days, momentarily elevating the CFX market cap beyond $1 billion.
(Source: CFXUSDT)
Conflux is also gearing up for a significant protocol upgrade (v3.0.1). The platform fork is slated for August 31 (08:00 UTC+8); Binance has indicated that it will pause CFX deposits and withdrawals starting September 1 as a precaution during the upgrade — a customary practice aimed at ensuring a seamless transition.
PetroChina’s Stablecoin Experiment Highlights Corporate Adoption and Hong Kong’s Regulatory Role
In the meantime, PetroChina is examining the potential for using stablecoins for cross-border settlements and transactions, pointing to Hong Kong’s newly established stablecoin guidelines (effective August 1) and the rigorous oversight by the HKMA.
China National Petroleum Corporation, one of the world’s largest energy firms, stated during its half-year report conference that the company is carefully observing the latest developments from the Hong Kong Monetary Authority regarding stablecoin issuer licenses, and will…
— Wu Blockchain (@WuBlockchain) August 29, 2025
If major energy corporations like PetroChina begin to settle transactions using yuan-pegged tokens, the ramifications for global trade routes could be tremendous. For China, this would signify a direct application of stablecoin technology aimed at increasing yuan-denominated transactions and reducing dependence on the U.S. dollar in commodities and oil markets.
Could Conflux crypto emerge as a significant force in this field? The answer rests on the outcomes of regulatory decisions from Beijing and Hong Kong, the success of Conflux’s upgrade, and whether leading businesses actually shift to settle in yuan-pegged stablecoins. Presently, Conflux finds itself at the core of a narrative that intertwines policy, infrastructure advancements, and corporate initiatives — and this mix is why traders are closely monitoring developments.
Key Takeaways
- China’s State Council is assessing a roadmap for yuan-backed stablecoins. This marks a considerable change in policy.
- Conflux crypto is gaining traction with its 3.0 upgrade and compliance advantage, aligning well with China’s blockchain goals.
- PetroChina investigates stablecoin transactions under Hong Kong’s new regulatory framework, underscoring wider adoption in established sectors.
The post China is Moving on Chinese Stablecoin: Is Conflux Crypto Pump Evidence of Smart Money Accumulation? appeared first on 99Bitcoins.
