The issuer of the USDT stablecoin, Tether, has expanded its list of backed coins by launching a new coin that is pegged by the Chinese Yuan.
Tether has launched so far three other stable coins that are backed by fiat currencies: U.S. dollar-pegged USDT, Euro-backed EURT, and Japanese yen–based JPYT.
Tether revealed that the new stablecoin is called ‘CNHT’ and it is an ERC-20 token based on the Ethereum blockchain. The coin’s value is directly linked to that of the offshore Chinese Yuan (CNH).
China has two kinds of national currencies: the offshore yuan and onshore yuan. The onshore yuan is regulated and tracked by the Chinese central bank, the People’s Bank of China. The offshore yuan, on the other hand, is not constrained by the Beijing monetary policies and can be traded on international markets.
“CNH represents a further expansion of Tether’s capabilities in facilitating the digital use of traditional currencies, such as US dollar (USDT) and euro (EURT).” – said the company in its announcement.
News about the Tether Chinese yuan stablecoin first surfaced back in August. Then, Zhang Dong, CEO of RenrenBit and shareholder of Tether’s sister company Bitfinex, stated his firm would be the first investor of the ‘CNHT’ stablecoin. As the coin is pegged to the offshore yuan, the CEO reasons that this association could increase the circulation of the fiat currency.
“CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it’s already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements.”-explained Dong.
No additional information has been provided with regards to CNHT. No details were given about the wallet or storage options for the stablecoin. Zhang Dong previously said that the reserves will be held at a Belgium-based bank, but the information is not certain.
Tether has also announced that it is contemplating creating a stablecoin backed by a basket of commodities such as gold, crude oil, and rubber.
Featured image: Cryptobit.media
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