Tether Issues Stablecoin Tied to Offshore Yuan

Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuer Tether has issued a new digital currency pegged to the offshore Chinese yuan, the company announced on Monday.

Dubbed CNH₮, the new fiat-pegged token will be launched on Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term under the ERC-20 standards.

“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),” Tether stated in the brief announcement. “CNH₮ is pegged to CNH, and will initially be available only on the Ethereum blockchain as an ERC-20 token.”

The Chinese fiat currency units can be categorized into onshore and offshore. The onshore yuan is tightly controlled by the country’s central bank, while the offshore units can be freely traded on foreign markets.

Tether’s launch of a digital currency tied to the offshore yuan does not come as a surprise, as media reports already revealed the company's plans to expand its portfolio of fiat-pegged crypto offerings.

Not much known about the new crypto yet

The company also shared the smart contract for the new coin on Ethereum. However, it did not provide any details about its new digital currency, including listing details.

While revealing a few details about Tether’s prospect earlier, Zhao Dong, a shareholder of Bitfinex, said that Chinese crypto lending company RenrenBit, which is backed by his venture capital and Bitfinex, will support the yuan-backed currency.

Meanwhile, Tether is also reportedly planning to launch a commodity-backed stablecoin tied to a basket of gold, crude oil, rubber, and other commodities.

China is also planning to introduce its own digital currency pegged to its fiat. According to a Chinese central bank official, the upcoming digital currency will resemble Facebook’s proposed Libra; however, it will be much more centralized and controlled by the bank.

Though Tether has launched another fiat-pegged currency, it is still reluctant to release a third-party audit report of its currency chest even after a slew of controversies.