Conflux Network, a public blockchain in China, has announced the launch of a stablecoin pegged to the offshore yuan (CNH), named AxCNH. The project is a collaboration with fintech firm AnchorX and IT security vendor Eastcompeace. The primary use case for AxCNH will be to facilitate cross-border payments for China's Belt and Road Initiative, a global infrastructure development strategy.

The market reacted strongly to the news, with the price of Conflux's native token (CFX) surging by over 100%. This price movement indicates significant investor interest in the development and the potential for a yuan-backed stablecoin to gain traction in international trade. The announcement was made in conjunction with the unveiling of Conflux 3.0, the next iteration of the network.

This development is part of a broader trend of stablecoin projects emerging in Asia, with Hong Kong reportedly receiving as many as 40 stablecoin license applications. The launch of AxCNH on the Conflux Network represents a notable step in the integration of blockchain technology with China's global economic ambitions.