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It’s Beijing deploying blockchain technology as a strategic weapon in its decades-long campaign to chip away at dollar dominance in global payments.Conflux, a Chinese state-backed blockchain, launched AxCNH on Sept. 17 with Hong Kong fintech AnchorX after obtaining a license in Kazakhstan, a major Belt and Road Initiative economy. The stablecoin is designed to facilitate cross-border transactions between BRI countries and offshore China entities, according to Reuters.Don't Miss:If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?$100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.As a major power, China cannot miss any potentially promising technology and will invest in every direction, including blockchain,” said Yang Guang, chief technology officer of Conflux, in an interview with Reuters. “As U.S. dollar stablecoins grow, can you imagine a digital world in 10 or 20 years where there's no place for the Chinese yuan on blockchains? Of course not.”The timing is strategic. President Donald Trump’s tariff war and unpredictable policies are re-routing global trade flows and eroding trust in the greenback, creating an opening for yuan-denominated alternatives. While China has long pursued yuan internationalization through initiatives like its central bank digital currency, stablecoins offer a different value proposition—they operate on existing blockchain infrastructure that’s already widely adopted in global crypto markets.Trending: Backed by $300M+ in Assets and Microsoft's Climate Fund, Farmland LP Opens Vital Farmland III to Accredited InvestorsKazakhstan isn’t a random choice. The country counts China as its biggest trading partner and is a Belt and Road Initiative participant, making it an ideal testing ground for yuan-denominated payment rails. Conflux has a government mandate to build a blockchain platform linking countries in the Belt and Road Initiative, Yang said.The regulatory arbitrage is equally important. Hong Kong has established a regulatory regime for stablecoins but hasn’t yet awarded any licenses to issuers, while in China, cryptocurrency trading has been banned since 2021. 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