Tether has launched its Chinese yuan-backed stablecoin, which will run on top of the ethereum blockchain as an ERC-20 token.
September 10, 2019, | AtoZ Markets - Stablecoin firm Tether has released a new stablecoin pegged one-to-one to the offshore Chinese yuan (CNH). The coin has been abbreviated as CNHT by the firm and is available as an ERC-20 token on the Ethereum blockchain. The new currency joins Tether’s other stablecoins supported by the U.S. dollars (USDT) and euro (EURT).
CNHT stablecoin might get live in RenrenBit platform
Tether has been working on the project since April. The news of the firm’s interest in Chinese Yuan was first revealed by Bitfinex shareholder Zhao Dong on Twitter. He twitted that the coin would go live through his China-based crypto trading platform RenrenBit.
Bitfinex is the sister exchange of Tether. Their main company, iFinex, is dealing with the legal battle with the New York Office of the Attorney General (NYAG) for alleged fraud for allowing Tether to lend Bitfinex $850 million from its reserves.
The New York State Supreme Court ruled that it has jurisdiction to decide the case between the NYAG and iFinex. As a result, the NYAG can continue with its investigations and demand the company to submit the documents requested by the agency.
On the other hand, People’s Bank of China (PBOC) has reportedly dedicated a technical team to develop its digital currency in a closed-loop environment.
Some of the sources also revealed that a closed-loop development and testing has started for the central bank digital currency (CBDC) to simulate payments from commercial and non-governmental organizations. If everything goes well, China’s CBDC is scheduled to be launched earlier than Facebook’s Libra coin.
Libra coin backed by major currencies
Libra will be backed by several national currencies which includes USD, EUR, YEN, GBP, and SGD, however, the Chinese currency- Yuan might not be in the list of reserve assets.
Moreover, Virginia’s Democratic Senator Mark Warner mentioned that China has been motivating other governments to include its currency in their foreign currency reserve holdings.
Additionally, Facebook team stated: “We understand that the Libra Association will not offer the Libra digital currency in any jurisdiction until it has fully addressed regulatory concerns and received appropriate approvals in that jurisdiction.”