Tether has disclosed its plan to one day issue a stablecoin CNHT which will be pegged to the Chinese Yuan fiat currency.
According to Zhao Dong, a shareholder of Bitfinex, who made this revelation on an interview he had with a Chinese media. He further revealed that Renrenbit his digital asset management will invest in the new stablecoin.
He added that “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.”
Recently China has reveal its national digital currency will soon be ready. The reveal could be as a result of the ongoing trade tension between the PBoC and United States with the Facebook Libra as the major catalyst.
Speaking on this, the Chairman of UnionPay Shao Fujun said that the national digital currency “will have lots of positive impacts, incluidng tracking the money flow in economic activities and supporting making monetary policy”.
Tether was launched over 4 years ago and has surprisingly withstood several scandals. By its affiliation with Bitfinex, the largest stablecoin with about billions of dollars market capitalization has met some serious criticism however, it has continue to rage on and has been able to launch on some blockchain networks in time past, for example the Tron Blockchain.
Disclosing the relationship between Bitfinex and Tether, Zhao Dong said that Tether and Bitfinex are two companies with a side-by-side relationship and they have same management team.
In July, 2019, Tether announced it had launched support for its stablecoin on the Blockstream’s Liquid Network.
Revealing the time of launch of the yuan backed stablecoin, Zhao Dong said that the stablecoin will be launched in the near future and the stablecoin reserves is expected to be held in a Belgium bank.