Controversial firm Tether has announced that it is expanding its list of stablecoins. In an effort to attract Chinese traders the firm will launch an offshore Yuan-backed digital currency, CNHT.
The stablecoin, CNHT, will be pegged to the yuan on run on the Ethereum blockchain as an ERC-20 token. The tether will now receive wire transfers of CNH at tether dot to. This will increase its ability to facilitate “the digital use of fiat currencies.” RenrenBit will be the first company to invest in the new stablecoin. Tether is the operator behind USDT and it now has four fiat-pegged tokens to its name. They are USD (USDT), Euro (EURT), Japanese yen (JPYT) and the Chinese Yuan (CNHT). However, the JPYT is yet to be launched.
The company appears to be cashing in on the current state of economic turmoil in the East. The currency of China has fallen significantly to its lowest levels against the US dollar in over a decade. This is because of the move fuelled by an escalating trade war by the US. Tether’s CNHT will now eliminate the need to use fiat when trading Bitcoin. It will offer liquidity between the assets.
People’s Bank of China (PBoC) is already launching its own centralized digital currency. Thus, this announcement by Tether might upset them as the former appears to have beaten them to the punch as the source says.