Shanghai to Test Offshore Yuan Stablecoin on the Conflux Blockchain

China is using restricted-access blockchains in many industries, but the government use of a decentralized chain is rare.

AccessTimeIconSep 17, 2021 at 8:26 a.m. UTC
Updated May 11, 2023 at 4:02 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Shanghai will use Conflux’s permissionless blockchain infrastructure to test an offshore yuan stablecoin in the city’s Lingang Pilot Free Trade Zone, according to a press release on Friday.

  • The experiment will be conducted by the new Shanghai ShuTu Blockchain Research Institute established by Conflux and the state-owned Shanghai Maritime University, according to the statement.
  • The Shanghai government confirmed the news with its own announcement Thursday.
  • China’s central bank digital currency has been in trials since April 2020 but has been applied in only a few cross-border scenarios.
  • Lingang’s Pilot Free Trade Zone was approved by the People’s Bank of China to test the free capital inflows and outflows and free currency exchange of the yuan in July. The region is pegged to be a high-end manufacturing and shipping hub.
  • The financial liberalization is meant to support China’s cross-border trade and investments, according to state media.
  • China is using restricted-access blockchains across a vast array of industries as it tests the technology, including in pilots for the central bank digital currency.
  • The research center will also look into developing blockchain standards for trade and shipping, Conflux said.
  • The area is also home to Tesla’s Gigafactory, as well as Siemens and General Electric manufacturing plants.
  • The Shanghai government invested $5 million in Conflux in January.
  • What On-Chain Access for AGI Unlocks
    20:26
    What On-Chain Access for AGI Unlocks
  • Degen Chain Racks up Millions in Volumes; Latest in Custodia Bank's Legal Battle Against the Fed
    02:06
    Degen Chain Racks up Millions in Volumes; Latest in Custodia Bank's Legal Battle Against the Fed
  • How Can AI and Blockchain Change the Music Industry?
    16:58
    How Can AI and Blockchain Change the Music Industry?
  • AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
    00:39
    AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
  • UPDATE (Sept. 17, 23:02 UTC): Corrects headline and first sentence to identify yuan stablecoin.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.