- PetroChina explores using stablecoins for cross-border payments to enhance energy trade and reduce transaction costs.
- Ripple’s RLUSD extends its reach in Singapore with Tazapay’s partnership, boosting stablecoin adoption in Asia.
- China’s digital yuan and stablecoin projects are gaining traction, despite internal concerns over financial stability risks.
China National Petroleum Corporation (PetroChina) has announced plans to explore stablecoin technology for international energy trade. This development comes as the company looks into enhancing cross-border settlements through its state-backed ventures.
The Chief Financial Officer of PetroChina announced during the semi-annual results conference of the company that the company is testing the prospect of stablecoins. The company is paying close attention to the stablecoin regulatory environment in Hong Kong and how that may facilitate global transactions.
The regulatory framework of Hong Kong has been of great interest to large organizations such as PetroChina. The new stablecoin project is intended to make global settlements more efficient and lower the transaction costs.
Stablecoins Pilot Projects in Shenzhen: More Transactions
Exploration at PetroChina is based on the experience of already successful pilot projects with stablecoins in Shenzhen. Stablecoins are used in these programs to exchange the Hong Kong dollar and the digital yuan of China. Xiongdi Technology created the system, which handles more than 100,000 transactions every day, and this fact indicates that cross-border payments could be seamless.
This achievement in Shenzhen demonstrates that stablecoins may assist in alleviating the problem of losing exchange rate volatility, which is a sensitive issue in international business. As PetroChina performs more research on the idea of stablecoins, there is the chance that this will open the gates to more extensive adoption among the state-owned companies in China.
China’s Digital Yuan and Stablecoin Debate
At the same time, an internal debate about the development of yuan-backed stablecoins is going on in China. This is in the larger initiative of facilitating the use of the Chinese yuan internationally. But there are anxieties in the Chinese financial circles. Former People’s Bank of China Governor Zhou Xiaochuan voiced concern, saying that stablecoins may actually subject the economy of the country to new risks instead of offering stability. Nevertheless, the adoption drive towards stablecoins has only grown in strength.
In the meantime, the RLUSD stablecoin issued by Ripple has become very popular in Asia. Recently, a fintech company, Tazapay in Singapore, finalized a Series B funding round, including Ripple as an investor. The collaboration makes Tazapay a central figure in the growth of RLUSD in the region. As Tazapay handles more than 10 billion dollars in yearly payments, its contribution to the adoption of stablecoins will continue to expand.
Ripple does not limit its growth to Singapore and has launched RLUSD in Japan with SBI Holdings. This is an international plan that underlines that Ripple is still determined to build stablecoins in the Asia-Pacific region.
