In the current wave of digital currencies sweeping the globe, central banks and private institutions are competing to explore the limitless possibilities of digital currencies. Last week, the global stablecoin market witnessed a milestone event: the official debut of the first Chinese offshore renminbi stablecoin, AxCNH. Developed by AnchorX, this stablecoin is pegged to the international renminbi (CNH) and was first launched at the Hong Kong "Belt and Road" Summit, with its core goal aimed at promoting cross-border transactions, especially within the framework of China's "Belt and Road" initiative. The launch of AxCNH not only marks an important step for China in the field of digital currencies but also injects new digital momentum into the internationalization strategy of the renminbi within the global financial landscape, signaling a comprehensive upgrade in the geopolitical game of digital currencies.
- AxCNH: A Global Strategic Pivot for Renminbi Digitalization
The AxCNH stablecoin launched by AnchorX is the first stablecoin pegged to the international renminbi (CNH), and its strategic significance is self-evident.
Debut at the "Belt and Road" Summit: The first appearance of AxCNH at the Hong Kong "Belt and Road" Summit is no coincidence. It aims to facilitate cross-border transactions, particularly within countries participating in the "Belt and Road" initiative. This infrastructure project connects China with the Middle East and Europe, expanding trade routes and strengthening economic cooperation. The launch of AxCNH will provide countries along the "Belt and Road" with a more convenient and efficient renminbi settlement tool, reducing the costs and time associated with traditional cross-border payments.
Enhancing the Global Influence of the Renminbi: AnchorX's initiative highlights China's growing interest in stablecoins and blockchain technology. Through AxCNH, the company aims to enhance the demand for the renminbi in global markets. By integrating the CNH stablecoin into the digital economy, China can strengthen the renminbi's influence abroad, making it more accessible and helping to alleviate inflationary pressures. An AnchorX representative stated, "AxCNH brings the renminbi into the global digital realm."
Over-collateralization and Value Stability: The AxCNH stablecoin features over-collateralization, supported at a 1:1 ratio by fiat currency deposits or government debt instruments, ensuring its value remains stable. This provides users with a high level of trust and security, allowing it to serve as a reliable medium of exchange.
- Global Stablecoin Race: The Concurrent Entry of KRW1
Alongside the launch of AxCNH, the global stablecoin race is becoming increasingly intense. Digital asset infrastructure company BDACS has launched a stablecoin pegged to the South Korean won, KRW1.
Similar to AxCNH: KRW1 is also an over-collateralized stablecoin, fully supported at a 1:1 ratio by fiat currency deposits or government debt instruments. It aims to enhance the liquidity of the won in international markets.
National Currency Digitalization Strategy: The issuance of KRW1 is part of South Korea's broader strategy to advance national currency digitalization and expand its global financial footprint. This stablecoin provides a pathway for South Korean businesses and individuals to participate in a blockchain-based financial ecosystem. This move will enhance South Korea's digital financial infrastructure and encourage broader use of the won in global trade.
The launches of AxCNH and KRW1 reflect the efforts of their respective countries to modernize financial infrastructure and reduce reliance on traditional systems that are often slow and costly.
- Stablecoins: Geostrategic Importance in the Global Economy
The importance of stablecoins in the global economy is becoming increasingly prominent. As sovereign governments commit to achieving digitalization of fiat currencies, the demand for digital assets is also on the rise. Stablecoins like AxCNH and KRW1 make national currencies more accessible and help alleviate inflationary pressures.
Improving Cross-Border Payments: By incorporating their national currencies into blockchain networks, countries can improve cross-border payments. This helps boost international demand for their currencies, which is often hindered by traditional financial systems.
Enhancing Economic Influence: The result is an enhancement of economic influence and a reduction in reliance on slow and cumbersome traditional financial systems.
China's Digital Currency Ambitions: The launch of AxCNH is part of China's strategy to strengthen its control over international payment systems. Traditional systems like SWIFT are slow and costly, especially in cross-border transactions. Stablecoins like AxCNH aim to leverage blockchain technology to mitigate these issues, providing faster, more efficient transactions and lowering costs. By supporting the digital renminbi with stablecoins, China is preparing to play a larger role in reshaping the global financial system.
- On-Chain Data from Conflux: Initial Performance of AxCNH
According to some on-chain data from Conflux last week:
Total Market Value of AxCNH: $2.9 million, with liquidity at $27,000. This indicates that AxCNH, as an emerging stablecoin, is still in the early stages of market cultivation but has established a certain market value foundation.
Conflux Ecosystem Development: The growth of CRC-721 NFTs and CRC-1155 NFTs on Conflux Core has slowed, but the growth rate of ERC-721 NFTs and ERC-1155 NFTs on Conflux eSpace has remained relatively stable this week. The staking volume in the PoS mining pool increased by 9.19 million cfx. The total TVL of the DeFi comprehensive platform (including DEX, stablecoin minting, lending) XUnion on Conflux eSpace is $863,000, showing growth compared to last week. The minting volume of xCFX on the liquidity staking platform Nucleon on Conflux eSpace has seen slight growth. The liquidity and trading volume of the decentralized exchange Swappi on Conflux eSpace have remained relatively stable. These data reflect that the Conflux ecosystem, which AxCNH relies on, is steadily developing.
Conclusion:
The launch of AxCNH marks the official debut of the Chinese offshore renminbi stablecoin on the global stage, representing an important step for China in the field of digital currencies. It aims not only to promote cross-border trade, particularly economic cooperation among countries along the "Belt and Road," but also carries the strategic mission of enhancing the international influence of the renminbi. With the continuous emergence of stablecoins like AxCNH and KRW1, the global financial landscape is undergoing profound changes. Stablecoins are becoming key tools for countries to enhance financial infrastructure, reduce reliance on traditional systems, and elevate the global status of their currencies. This geopolitical game of digital currencies has only just begun.
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Original Article: “China's Offshore Renminbi Stablecoin AxCNH Debuts Globally, Accelerating Renminbi Internationalization”
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