Tether has launched a Stablecoin backed by the Chinese Yuan. It will be run as an E2C-20 token on the Ethereum blockchain.
Offshore Chinese yuan (CNH) added to our basket of supported currencies, new stablecoin CNHt now available! CNHt is pegged to CNH and is available on the Ethereum blockchain as an ERC-20 token. https://t.co/MEWUw171ky pic.twitter.com/R7lN7ADPFb — Tether (@Tether_to) September 9, 2019
Offshore yuan is free to be traded on the foreign currency market, while onshore yuan has a tight eye by its Central bank.
The offshore yuan is therefore free from the tight policies of the Chinese financial system.
Reserves will be stored in a bank in Belgium according to Zhao Dong.
“Zhao Dong, a shareholder in Tether’s affiliate exchange Bitfinex, said he believed that a Stablecoin backed by offshore yuan could boost the circulation of the fiat currency.”
A smart contract address was released last Monday for CNHT. However further details were not provided.
Tether considers commodity
Tether plans to release a stablecoin backed by a basket of commodities such as gold, crude oil and rubber. Zhao Dong, a shareholder of sister firm and crypto exchange Bitfinex, said that the idea of issuing a coin pegged to commodities was being considered in order to mitigate the risks associated with keeping large amounts of reserve funds deposited in banks. Cointelegraph Report