China Mulling the Use of Stablecoin for International Payments

China’s state-owned energy company, PetroChina, moves towards digital finance as it sets its sights on stablecoins for settling cross-border energy trades. According to the announcement, this shift could transform global energy transactions. 

China Forges Ahead in Stablecoin and Crypto Innovation

At its semi-annual results conference, the Chief Financial Officer of PetroChina stated that the company will utilize stablecoins for international payments. This effort will simplify and modify cross-border transactions while decreasing dependence on traditional banks.

Furthermore, PetroChina is watching the new stablecoin framework in Hong Kong. This suggests that the company sees the region as a potential center for blockchain-based payments. 

It is worth noting that Hong Kong’s clear rules on digital assets make it an appealing place for state-backed companies to test new financial solutions.

Ripple and RLUSD Gains Recognition in Singapore

Meanwhile, the announcement comes as Ripple’s U.S. dollar-backed stablecoin, RLUSD, is gaining popularity in Singapore’s fintech and blockchain sectors. 

To strengthen its presence in the area, Ripple has invested in Tazapay, a Singapore-based platform for cross-border payments that offers digital payment solutions for global trade. This investment reflects Ripple’s plan to increase the use of RLUSD across Asia.

Tazapay announced the close of its Series B funding round. Several prominent investors participated in the funding round, including Ripple Circle Ventures. Peak XV Partners, Norinchukin Capital, and GMO Venture Partners also took part in the funding round.

Interestingly, Singapore is not the only place of expansion for the San Francisco-based blockchain firm. Last month, the firm made bold moves to bring its U.S. dollar-backed stablecoin into Europe. The blockchain company confirmed that Luxembourg is the first stop in its strategy to expand across the European Economic Area (EEA).

China Mulls Yuan-Backed Stablecoins

Recently, China’s State Council announced its plan to allow the use of yuan-backed stablecoins for the first time. According to sources familiar with the matter, this move aims to strengthen the global role of the Chinese yuan. If approved, the move is significant toward increasing the international use of China’s currency and reducing reliance on the US dollar.

The Republic of China has enjoyed remarkable advancements in its crypto sector. China’s development of the digital yuan and its effort in exploring blockchain technology showcase its commitment to driving innovation in cryptocurrency.

In a similar vein, the digital yuan, a Central Bank Digital Currency (CBDC) of the People’s Republic of China, demonstrated impressive growth in transactions. Last year, it was announced that the CBDC surpassed popular stablecoins USDC and USDT in activity.