China’s public blockchain Conflux is making headlines again. With its 3.0 upgrade set to roll out this August, the project is also preparing to issue a yuan stablecoin pegged to the offshore renminbi (CNH), signaling a major shift in the country’s Web3 strategy. According to recent announcements published on Shanghai’s official portal, Conflux’s next phase is not just about scalability—but about establishing China’s presence in the global stablecoin market.
While the crypto world remains focused on U.S. legislation and Western markets, this bold move by Conflux highlights how Asia continues to quietly push the boundaries of blockchain development. The proposed yuan stablecoin will not be directly tied to the People’s Bank of China or the central bank digital currency (e-CNY). Instead, it will serve as a more flexible offshore solution, designed to facilitate international crypto settlements and decentralized finance integrations without relying on the U.S. dollar.
What We Know About the Yuan Stablecoin So Far
The offshore yuan stablecoin, currently unnamed, will be issued in partnership with licensed financial institutions in Hong Kong and Singapore, according to details shared on WeChat by Conflux ecosystem developers. It will be pegged to the offshore renminbi (CNH), rather than the domestic CNY, to comply with China’s capital controls and allow international usage without breaching local monetary policy restrictions.
The launch of the stablecoin is expected to coincide with Conflux’s 3.0 upgrade—marking a new era for the project as it aims to become a cross-border settlement layer for Asian crypto users and fintech platforms. The move is also seen as a response to the growing influence of US dollar-backed stablecoins like USDT and USDC in global crypto markets.
Conflux 3.0: A Technical Leap Forward
In parallel, the Conflux Network is preparing a major upgrade to its protocol. Conflux 3.0 is designed to improve throughput, reduce transaction fees, and introduce enhanced EVM compatibility. While the chain already boasts hybrid PoW/PoS consensus and low-latency performance, version 3.0 will further strengthen its infrastructure to support real-world financial applications.
The update will also open doors to more institutional use cases, especially as the ecosystem grows with the planned yuan stablecoin integration. Developers believe that combining high performance with localized stablecoin support will attract users from Southeast Asia, the Middle East, and other regions seeking alternatives to USD-dominated platforms.
Geopolitical Strategy: Challenging Dollar-Denominated DeFi
Although not officially tied to the Chinese government, the move by Conflux aligns with Beijing’s broader aim to internationalize the renminbi and reduce dependence on U.S. financial systems. It also mirrors the BRICS agenda, which includes the development of cross-border payment systems that bypass SWIFT and the dollar entirely.
By launching a yuan stablecoin, Conflux could help provide a trusted, blockchain-based instrument for international trade and DeFi operations that are rooted in Asian liquidity—rather than being beholden to U.S.-centric assets and policies.
Final Thoughts: Why the Yuan Stablecoin Could Be a Game-Changer
The planned release of a yuan stablecoin by Conflux—paired with the powerful 3.0 upgrade—marks a strategic evolution for one of China’s most prominent Layer 1 chains. As Western markets grapple with regulation and stablecoin bottlenecks, Asia may quietly leap ahead with scalable, compliant infrastructure optimized for both institutional and retail users.
If Conflux delivers on both fronts in August, it could become a cornerstone of Asia’s emerging blockchain ecosystem—offering developers and users a credible alternative to dollar-backed systems, and perhaps even redefining how Web3 is used for international settlements in the coming decade.
