Most governments worldwide are worried about the regulations and monitoring of stablecoins. On the other hand, China is planning to bring a Yuan-pegged stablecoin for crypto trading. This coin is the ‘offshore Renminbi.’
Chris Banbury, the chief of global operations at Conflux stated in an interview that the firm would offer its tools and advanced technologies in bringing out an offshore renminbi (RMB).
Conflux is a DeFi ecosystem that supports cross-border, multi-chain collaboration. This stablecoin will be a stablecoin attached to China’s digital Yuan. Digital Yuan is the offering of the Central bank of China, i.e., a CBDC.
Offshore Renminbi and Digital Yuan
Banbury said that RMB would be no official integration being pegged to the digital Yuan but just the price. He further said that the project’s most crucial short-term goal is to explore the trading behavior of the token against other cryptocurrencies.
The new stablecoin, RMB, is going to be operating in the free economic zone. This area is in Shanghai’s special area called Lin-gang, which, in July, was allocated to be used to explore free trade with a foreign RMB coin.
Banbury clarified that there is no endorsement or relation of the Chinese government with the pilot program.
RMB is different from other stablecoins
Unlike the most used stablecoins like Tether(USDT), the offshore renminbi coin is fully decentralized. This means that it will not be privately owned by any organization or individual.
Banbury added that the coin is known for being “offshore” because it will not be used for domestic trading and only be limited to global trading. However, the digital Yuan is exclusively designed for domestic use.
He further clarified that one should not call offshore RMB as offshore Yuan. Offshore renminbi is held by the Conflux tree-graph institute, Shanghai ShuTu Blockchain Research Institute, for further research.
He also said that they had not dedicated a ticker to offshore RMB as the development and research team is still working on it. Also, the launch date is not decided yet.
China has come a long way since shutting down all major mining farms and banning cryptocurrency trading. It is one of the fastest nations to debut a CBDC.