Tether will release its Chinese stable coin, supported by the yuan, which will run on the Ethereum blockchain as an ERC-20 token. The stable coin issuer said in a short post on Monday that the new token, known as CNH, is secured by RMB held in offshore accounts.
“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)” – the announcement said.
Meantime, over-the-counter trader Zhao Dong, a shareholder in the Tether affiliate exchange, Bitfinex said that he believes that a stable coin supported by the offshore yuan can stimulate the circulation of fiat currency.
It is worth remarking that at the moment Tether showed only a smart contract for CNH, they did not provide any additional information about the new product.
It also remains unclear where Tether will store the yuan, which maintains a stable coin, although according to preliminary information, the reserves will be stored in a bank in Belgium.