Tether Plans to Issue Stablecoin Backed by Chinese Yuan
Tether has been reportedly working on a new stablecoin pegged to the Chinese Yuan. The stablecoin project named “CNHT” came from the intention of Zhao Dong, one of the shareholders of the Bitfinex crypto exchange.
Zhao Dong’s digital banking business, RerenBit will be supporting CNHT’s trading and deposit services as soon as it is launched.
Zhao also confirmed that he believes that the new stablecoin “will be launched very soon, possibly within weeks.” The new stablecoin’s reserve is expected to be held in a Belgian bank.
The two main benefits explained by Zhao include that it would make Tether less dependent on the US dollar while boosting the circulation of the Renminbi held offshore.
He later added:
“Personally, I think the offshore yuan stablecoin could boost the circulation of offshore Renminbi and internationalize it. Regulators may be happy to see it proceed and succeed.”
Amidst the new stablecoin plans, Bitfinex and Tether are still under an ongoing investigation regarding an alleged cover-up. The NYAG is inquiring into Bitfinex’s loss of access to funds totaling to $850 million and borrowing funds from Tether’s US dollar reserve.