RESDC

China's first stablecoin:

1. Concept Definition: What is a rare earth stablecoin?

Rare earth-specific RMB stablecoin (RESDC) is the world's first sovereign resource-backed digital currency launched by China, essentially a legal digital currency derivative backed by national strategic resources. Unlike traditional cryptocurrencies, RESDC has three core characteristics:

1. Dual anchoring mechanism: Each RESDC corresponds to 1:1 RMB reserves and equivalent physical rare earth assets (such as praseodymium-neodymium metal, dysprosium, etc.), forming a dual credit support of 'fiat currency + resources'. This design maintains exchange rate stability with the RMB while endowing it with resource scarcity value.

2. Scenario limitations: The scope of use is strictly limited to cross-border trade settlement of rare earths and their derivatives, controlling the flow of funds through smart contracts to avoid becoming a speculative tool.

3. Technical complexity: Integrating blockchain (Ant Chain), digital RMB (e-CNY), and international trade settlement systems to build a 'central bank digital currency + resource traceability + cross-border payment' triadic technical architecture.

The birth of this new type of stablecoin marks the entry of digital currency development into the 3.0 phase—from Bitcoin's 'decentralized experiment' (1.0), fiat stablecoins like USDT (2.0), to the 'resource-financial complex' led by sovereign countries (3.0).

2. Underlying Logic: Why rare earths?

Choosing rare earths as the anchor is not accidental; it is backed by a rigorous strategic design:

1. Advantage of resource control rights

- Supply chain monopoly: China controls 88% of global rare earth smelting capacity, with over 95% share in key elements such as praseodymium-neodymium (motor materials) and dysprosium (laser devices). This near-monopoly position gives RESDC a mandatory acceptance similar to 'petrodollars'.

- Rigid demand growth: The explosion of industries such as new energy vehicles (the amount of rare earths used is 10 times that of traditional cars), humanoid robots (each joint requires heavy rare earths), and military industry, has made rare earths a strategic material with greater growth potential than oil.

2. Demand for financial breakthroughs

- Breaking the inertia of dollar settlement: Currently, 99.9% of global on-chain settlements are dominated by dollar stablecoins. By binding rare earth trade to RMB, it can force industrial countries like Japan, South Korea, and the EU to passively hold RMB reserves, replicating the 'oil-dollar' cycle.

- Building a new type of currency anchor: Against the backdrop of declining USD credit, the physical value of rare earths as 'industrial vitamins' is more aligned with modern industrial needs than gold, providing a new pivot for RMB internationalization.

3. Technical regulatory closed loop

- Traceability controllability: The entire process of rare earth mining, smelting, and export has achieved digital regulation, ensuring that 'one coin corresponds to one item' by binding cargo traceability data through blockchain.

- Sandbox experiment matured: The (stablecoin regulatory regulations) that took effect 60 days in advance in Hong Kong provide legal protection, while the 'dual-track system' in the Shanghai Free Trade Zone verifies the feasibility of cross-border regulation.



3. Implementation entities: National team in coordinated operations

The landing of RESDC is the result of a multi-party collaborative 'army operation':

1. Resource-dominated

- China Rare Earth Group (restructured from six major rare earth groups): Responsible for physical asset valuation and reserve management, with the world's largest rare earth reserves forming the credit cornerstone.

- Northern Rare Earth: As a representative of light rare earths, ensuring the supply chain connection for major commodities like praseodymium-neodymium.

2. Financial support

- People's Bank of China: Provides management of fiat currency reserves and coordination of monetary policy to ensure a 1:1 exchange with digital RMB.

- China Development Bank: Constructs a $45 billion liquidity pool, maintaining exchange rate stability through monetary swap tools.

3. Technical empowerment

- Ant Group: Ant Chain provides cross-border settlement capability of 100,000 transactions per second, and smart contracts achieve automatic verification of customs declarations and logistics data.

- Digital RMB Research Institute: Opens e-CNY system interfaces to achieve instantaneous conversion between 'digital fiat currency - resource stablecoin'.

This 'central enterprise + central bank + technology giant' combination ensures both policy authority and market operation capability.

4. Implementation Timeline: A model of Chinese speed

From policy brewing to formal implementation took only 31 days, demonstrating astonishing execution efficiency:

1. Decision-making phase (July 1, 2025)

- The central special conference approved the pilot scheme, clarifying the three principles of 'national credit endorsement, implementation by state-owned enterprises, and controllable technology'.

- The Ministry of Commerce simultaneously introduced supporting measures: tightening rare earth export qualifications, listing 30 smuggling enterprises on the blacklist.

2. Technical preparation (July 1 - July 25)

- The Hong Kong Monetary Authority completed sandbox testing, verifying the parallel operation of RESDC and the SWIFT system.

- The Shanghai Free Trade Zone builds a 'dual-track monitoring system' to track rare earth export data in real time.

3. Market warming up (July 26 - July 31)

- Targeted invitations to 20 core buyers from Japan, South Korea, Germany, etc., to connect to the testing network.

- Compliant exchanges like XBIT complete system adaptations and establish OTC exchange channels.

4. Official launch (August 1)

- First transaction on the Hong Kong Monetary Authority's large screen: Mitsubishi Corporation pays 27 million RESDC to purchase praseodymium-neodymium metal.

- Data from Shanghai Clearing House shows that the first-day on-chain settlement volume exceeded $800 million.



5. Strategic Impact: Restructuring the global currency landscape

The launch of RESDC may trigger the following profound changes:

1. Resource-financial paradigm shift

- Forming a new cycle of 'rare earth RMB' replacing 'petrodollar': Japanese and Korean enterprises are forced to reserve RESDC to obtain rare earths → offshore RMB liquidity enhances → demand for RMB assets rises.

2. Competition for technical standards

- The blockchain cross-border settlement standards led by China (such as smart contract data fields, traceability protocols) may become industry norms, weakening the SWIFT system.

3. Geoeconomic restructuring

- Priority access for 'Belt and Road' countries to the system (such as Kazakhstan's uranium mines, Congo's cobalt mines), accelerating regional economic integration.

- The EU's €8 billion alternative mineral plan exposes technological gaps, and rebuilding the supply chain requires a 5-7 year window that China is leveraging.

The current global financial system is undergoing the most profound changes since the collapse of the Bretton Woods system. The rare earth stablecoin, as China's financial innovation 'nuclear weapon', is powerful not only due to its $45 billion initial liquidity pool but also because it transforms the advantages of the real industry into strategic pathways for financial discourse. When BMW's production line moves to Shenyang due to RESDC, and when Malaysian manufacturers are forced to buy RMB assets in offshore markets, this quiet monetary revolution has already rewritten the economic rules of the 21st century.