What happened?
Conflux Network, a blockchain based in China, announced a significant upgrade and plans to launch a yuan-pegged stablecoin. The Conflux 3.0 upgrade is designed to increase network speeds up to 15,000 transactions per second. Alongside the upgrade, they aim to introduce a digital currency to facilitate cross-border payments with countries involved in China’s Belt and Road Initiative.
Who does this affect?
This development primarily affects participants in the Belt and Road Initiative, including countries like Singapore, Indonesia, Malaysia, and Kazakhstan. It also impacts users of the Conflux Network and holders of its native token, CFX. Additionally, companies involved in cross-border transactions stand to benefit from the stablecoin aimed at easing international commerce.
Why does this matter?
The announcement had an immediate impact on the market, with the CFX token experiencing a significant price surge of 57%. This illustrates investor confidence in the potential of the new stablecoin and network upgrade. The move could further China’s influence in the global financial ecosystem, especially in relation to cross-border transactions using yuan-backed digital currencies.