Tether – the foremost yet controversial distributor of stablecoins, which has a wider network outreach than any other stablecoin in the market today including blockchains as Omni, Ether, Tron and EOS, recently announced the launch of a new stablecoin. This new cryptocurrency tagged ‘CNHT’ is pegged directly to the offshore Chinese Yuan (CNH).
‘CNHT’ appears to be the fourth stablecoin to be listed under the Tether platform in addition to three other stablecoins pegged to the following fiat currencies as U.S. dollar (USDT), Euro (EURT) and the Japanese yen (JPYT).
According to a press release on Wednesday, ‘CNHT’ stablecoin would be launched ‘in the near future’. This statement was disclosed by the CEO of RenrenBit, Zhang Dong to ChainNews (originally published in Mandarin). Dong, one of the shareholders of Tether’s affiliate exchange platform – Bitfinex, affirms this adding that his crypto lending firm – RenrenBit would be the first to invest in the ‘CNHT’ stablecoin.
Onshore and Offshore Yuan (¥)
Stablecoins enjoyed an increased funding in 2018, with the involvement of industry key players such as Huobi, StableUSD, Monerium, Stronghold, TokenX, Celo, TerraX, Paxos and USD coin. Furthermore, in the spirit of this trend, eToro recently launched an onshore yuan-backed stablecoin with the ticker “CNYX”, onto its eToroX exchange platform.
Hence for the purpose of this piece, it becomes necessary to emphasize such terminologies as an onshore (CNY) and offshore (CNH) Yuan. The contrast between the two is quite simple. Whereas the onshore Yuan trades under the control and jurisdiction of the People’s Bank of China, the offshore Yuan is unregulated and trades on foreign currency markets. With each yuan having its unique exchange rate.