Tether Launches New Stablecoin Pegged to Yuan

Tether Launches New Stablecoin Pegged to Yuan

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.

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