It was recently announced that Tether is planning to issue a stablecoin anchored to the Chinese yuan, according to information revealed by a trader to Coindesk.
In the publication, they indicate that Zhao Dong, is an over-the-counter (OTC) merchant in China and, in addition, is a shareholder of the Bitfinex encryption exchange, revealed the novelty at WeChat on Wednesday by disclosing Tether’s plans to call the CNHT stablecoin .
He added that his peer to peer crypto loan platform, RenrenBit, will support trade and deposits for CNHT when it is launched. They indicate that the merchant then published the following:
“Personally, I believe that the stable offshore yuan could boost the circulation of the offshore renminbi and internationalize it. Regulators can be happy to see it proceed and succeed. ”
The merchant Zhao told the source that he believes the new stable currency will “be launched very soon, possibly within a few weeks.” Similarly, he said that the cryptocurrency reserve is expected to be maintained in a bank in Belgium.
In his opinion, the token could have two main benefits: it would make Tether (USDT) less dependent on the US dollar for its stable currency business while increasing the circulation of the Chinese yuan abroad, as published.
Zhao said he did not know if Tether has buyers in line for the new stablecoin and that it is still unclear on which blockchain the CNHT would be built.
Tether is known for issuing the USDT stablecoin anchored to the US dollar. USDT is a stable cryptocurrency that was created so that its owners could maintain their purchasing power, but that is also slightly inflationary, just to the point of incentivizing its use instead of keeping it saved.
Initially, Tether was released on the Bitcoin blockchain. Subsequently, it went on to use the Omni Layer Protocol (an open-source software) but it remains anchored to Bitcoin. USDT is issued by Tether Limited, based in Hong Kong. Tether Limited operates on the Omni protocol as a token issued on its network.