First Chinese Yuan Stablecoin Debuts As Global Race Intensifies

The global stablecoin race is intensifying with the launch of two new national currency-backed tokens. AnchorX introduced AxCNH, the first regulated stablecoin pegged to the offshore Chinese yuan (CNH), at the Belt and Road Summit in Hong Kong. Meanwhile, BDACS unveiled KRW1, a fully backed stablecoin linked to the South Korean won. Both projects stress overcollateralization, with fiat reserves or government debt instruments supporting the tokens.

AxCNH’s timing is significant. China is positioning stablecoins as tools for cross-border settlements in the Belt and Road initiative, which connects Asia to the Middle East, Europe, and other regions through infrastructure and trade.

Analysts say stablecoins are now a matter of geopolitical competition, as countries move to place their fiat currencies on digital rails. The goal is to expand global demand for national currencies while offsetting inflationary pressures from monetary expansion. This new wave of state-linked stablecoins highlights the convergence of finance, technology, and international strategy.

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