A Chinese trader, identified as a shareholder of the Bitfinex exchange house, told Chinese media that Tether would issue a new stablecoin (a fiat-anchored cryptocurrency) backed by the yuan. The local ChinaNews portal disclosed the information on Wednesday, August 21.

The spokesperson is an OTC trader (Over-the-counter or over-the-counter trade), named Zhao Dong, who also has a shareholding in Bitfinex, a subsidiary of Tether. According to the <a href="https://www.chainnews.com/news/578302168020.htm?from=singlemessage&amp;isappinstalled=0">reports</a>, Zhao Dong announced the movement initially through Weibo, a popular social network in China.

The Tether would plan to link the new stablecoin, which would take the CNHT ticker, to the offshore yuan. The merchant, the owner of the OTC company RenrenBit, told another media that Tether will launch the stablecoin in a few weeks and that the CNHT backup treasure is expected to remain deposited in a bank in Belgium.

"I believe that a stablecoin based on the 'offshore' could boost the circulation of the shore offshore' renminbi and internationalize it. Regulators can be happy to see him move forward and succeed," said Zhao Dong. The renminbi (RMB) is the official denomination of the currency in the Asian country, issued by the People's Bank of China, whose basic unit of account is the yuan.

Tether already has three other <a href="https://www.cryptoknowmics.com/crypto/profits-and-losses-of-bitcoin-and-other-cryptocurrencies-investment-funds/">cryptocurrencies</a> anchored to fiat currency in its stablecoins basket: USDT, anchored to the US dollar; EURT linked to the euro; and another token anchored to the Japanese yen (JPYT) which, according to the movements in<a href="https://etherscan.io/token/0xfade2b5fe834f99575b7eee2ca465823e5ac7b70"> ethersacan</a>, does not seem to be circulating yet.

The reports do not clarify which blockchain CNHT will be hosted on. The primary token of the project, Tether (USDT), has been incorporated into five blockchains, such as Ethereum, Omni, Tron, EOS, and recently Algorand.

Zhao said the CNHT token would offer advantages such as less dependence on Tether from the US dollar and, at the same time, increase the circulation of the renminbi outside of China. Although he said he did not know if Tether already has buyers waiting to acquire the new stablecoin, he said his company would be among the first to invest in CNHT.

It should be remembered that an investigation into Bitfinex and Tether is still ongoing, initiated by the New York Attorney General (NYAG) last April. The companies were accused of alleged irregular handling of user funds and offered securities in New York City without a license. Among other accusations, the Prosecutor's Office said Bitfinex could have used Tether mooring reserves to mask USD 850 million of losses.

Tether plans to launch new stablecoin anchored to Chinese yuan

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Tether plans to launch new stablecoin anchored to Chinese yuan

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