Conflux, the developer of the cryptocurrency network of the same name, revealed its collaboration with AnchorX and Eastcompeace Technology to issue an offshore yuan-pegged stablecoin for trading outside of China.
The stablecoin will be used in countries participating in the Belt and Road Initiative, a global project led by China to promote trade and infrastructure, which includes nations such as Pakistan, Sri Lanka, Kenya, and Malaysia. This approach aims to facilitate cross-border transactions in strategic regions.
Additionally, Conflux announced the launch of Conflux 3.0, scheduled for August. This upgrade promises to increase network capacity to 15,000 transactions per second (TPS). The upgrade will also enable large-scale settlement of international payments and real assets.
The announcement boosted the price of CFX, Conflux's native cryptocurrency, from $0.10 on Saturday to $0.22 today, representing a 120% increase. This surge reflects market interest in stablecoins and network improvements.
CFX price over the last 7 days. Source: CoinMarketCap.
This increase positions CFX as the cryptocurrency with the fastest weekly growth among the top 100 by market capitalization, reaching $1.1 billion. It is followed by Tezos (XTZ), with a weekly increase of 62%.
In a broader context, People's Bank of China Governor Pan Gongsheng noted in June that stablecoins and central bank-issued digital currencies are transforming global payment systems. His comments highlight China's interest in these assets, despite domestic restrictions.
Unlike mainland China, Hong Kong, a special administrative region of China, adopts a legal framework that encourages crypto assets, acting as a testing ground for new financial policies. In this context, Hong Kong approved a licensing regime for stablecoin issuers in May, which will take effect on August 1. This regulation defines licensing requirements, clarifies what constitutes a regulated stablecoin, and grants Hong Kong's central bank the power to investigate and sanction noncompliance, seeking to protect financial stability.
