- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.