Tether has launched a Stablecoin backed by the Chinese Yuan. It will be run as an E2C-20 token on the Ethereum blockchain.
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