China Is Interested in Creating Its Own Stablecoin Tethered to Yuan
The goal of the Chinese government in regards to the development on the national economy is crystal clear: the country is aiming at economic dominance and strong competition with the largest western economies. One of the components of this process is establishing yuan as a strong international currency.
While the South East Asia already believes that yuan is a fine substitute for US dollar, China is continuing to expand the influence of its national currency by announcing that a new Stablecoin based on the Conflux platform is in development. The coin will be an offshore asset tethered to yuan. As pointed out by the chief of global operations at Conflux Chris Banberry, a formal integration of yuan is not on the table but the direct connection to the price of the currency will be a huge part of the project.
Experts believe that the new stablecoin will increase the scale of international trade in the Shanghai region and bulk up the volume of yuan trading outside of the SEA region. Banberry noted that despite a general nod of approval from the Chinese government, the project remains independent from governmental bodies.
The main developer of the technology is ShuTu institute in Shanghai. Conflux Tree-Graphh will provide technical support and necessary resources for the project.