According to Zhao Dong, an over-the-counter (OTC) trader in China, said that Tether is working on a stablecoin that would be pegged to the Chinese renminbi. As reported by CoinDesk, Dong shared this information on WeChat on Wednesday. The new digital currency backed by the Chinese renminbi is expected to be called CNHT.
Tether Could Be Working On New Stablecoin
Tether is known for being the creator of the USDT stablecoin backed by USD. Although it has experienced many controversial issues during the last few years, it remains the largest and most liquid stablecoin in the market.
As per Zhao Dong, RenrenBit will be supporting trading and deposits for CNHT as soon as it is launched. He believes that the yuan stablecoin would help internationalize the renminbi.
About it, Dong commented:
“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.”
ALthough the Chinese yuan plays an important role in the world economy, as we have seen during the last weeks, it still remains far from being a dominant currency in terms of international trades and settlements.
The new plans for CNHT come after difficult times for Bitfinex and Tether that are currently being investigated by the New York Attorney General (NYAG) after being accused of covering losses up with funds to back the popular USDT stablecoin.
There are different cryptocurrencies in the market and stablecoin are also growing. Stablecoins are used by traders to hedge against volatility in the market. These stablecoins can also be used in order to help traders exchange their funds for other digital assets in platforms that do not offer fiat trading pairs. Furthermore, stablecoins are also used by other companies and firms to send and receive funds in a fast way without having to be worried about fluctuations in the crypto market.
Although there are several stablecoins operating in the crypto industry, this new proposal seems to be the first one being backed by the Chinese currency. Some of the most popular stablecoins in the market include Tether, USD Coin (USDC), TrueUSD (TUSD), Paxos Standard (PAX), Gemini USD (GUSD), BitUSD and many others. All these virtual currencies mentioned are back by the U.S. dollar. However, there are many others backed by the Euro or the British pound.
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