China’s new decentralized stablecoin targets international trade

As global financial authorities become more and more Pay attention to stablecoin supervision, A Chinese jurisdiction is preparing to pilot a new stable currency linked to the renminbi in international trade.

Chris Banbury, head of global operations for the permission-free blockchain project Conflux, told Cointelegraph on September 21 that the company will provide its technology to launch an offshore renminbi (RMB) stablecoin linked to the digital currency (CBDC) of the People’s Bank of China.

“This will only be linked to the digital renminbi without formal integration,” Banbury pointed out, adding that the project will explore ways to trade tokens with other currencies.

The new stablecoin project will promote international trade in the Shanghai Lingang Special Zone after the Chinese government indeed In July, the free economic zone allowed exploration of free trade with offshore RMB stable currencies.

“Although the use cases of offshore RMB stablecoins have been approved by the Chinese government and the Shanghai government, the pilot program has not been approved by the government or has any government-related relations,” Banbury pointed out.

Compared with popular stablecoins such as Tether (USDT) And U.S. dollar coins (USDC), the upcoming offshore RMB stablecoin will not be a private stablecoin because it is completely decentralized, Banbury said. The executive stated that the new stablecoin is called “offshore renminbi stablecoin” because its functions will be limited to global transactions:

“The term’offshore’ refers to the use of renminbi for international trade purposes, not for domestic trade. Digital yuan is exclusively for domestic use. Therefore, offshore renminbi is not “offshore renminbi.” Banking Supervision.”

related: Chinese banks explore electronic dollars to sell investment funds and insurance

According to Banbury, offshore RMB stablecoins are held through the Shanghai Tree-Graph Blockchain Research Institute, which is a branch of the Conflux Tree-Graph Institute for blockchain research and development. He added that the stablecoin has not yet received the dedicated code because the development team is still determining when it will be launched.

As one of the first countries in the world to launch CBDC, China and local authorities continue to crack down on cryptocurrency trading and mining Close multiple mines with Suspend crypto trading transactions This year.