For years, the world has been watching China's efforts to establish the digital yuan as a major player on the global stage. However, despite high-profile trials and substantial government support, the digital yuan hasn’t yet caught on internationally as Beijing likely expected.

Meanwhile, a quiet pivot is underway in Beijing, where blockchain startups are piloting yuan-backed stablecoins — a possible fallback for extending the currency’s global footprint — just as Washington moves to clear the way for dollar-linked stablecoins to scale abroad.

In mid-July, Chinese financial news outlet Sina Finance reported that Conflux Network, a Chinese Layer 1 blockchain backed by the Shanghai government, had teamed up with fintech company AnchorX and Shenzhen-based public firm Eastcompeace Technology to create stablecoins tied to the offshore yuan, known as CNH.

To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io