Tether launches new offshore Yuan- pegged stablecoin
|- The stablecoin will be launched on Ethereum blockchain under the ERC-20 standards.
- Tether is also planning to launch a stablecoin backed by a basket of commodities.
Tether recently announced the launch of a new digital currency backed by offshore Chinese yuan. The new fiat-pegged token, dubbed CNH₮, will be launched on Ethereum blockchain under the ERC-20 standards. In the announcement, Tether stated:
“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). CNH₮ is pegged to CNH, and will initially be available only on the Ethereum blockchain as an ERC-20 token.”
The Chinese fiat currency units can be classified into onshore and offshore. The country’s central bank handles the onshore yuan, while the offshore units can be freely traded on foreign markets. Tether’s intention to launch its fiat-pegged crypto offerings to expand its portfolio was not spontaneous but pre-planned.
The company has only shared the smart contract for the digital currency on Ethereum without giving any further details, including listing details. Zhao Dong, a shareholder of Bitfinex, stated that RenrenBit will support the yuan-backed currency. Renrenbit is a Chinese crypto lending company backed by Dong’s venture capital and Bitfinex.
Tether is also planning to launch a stablecoin backed by a basket of commodities including gold, crude oil, and rubber. On the other hand, China also has plans to launch its fiat-pegged digital currency. A Chinese central bank official reported that the upcoming digital currency will resemble Facebook’s Libra.
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