Altcoin News: Tether May Issue Stablecoin Tied to $CNH

August 21, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The stablecoin issuer Tether intends to release a new instrument, the course of which will be tied to the Chinese yuan.

It was reported by the founding partner of the Primitive fund, Dovey Wan, referring to a statement by Zhao Dong, a Bitfinex cryptocurrency exchange investor affiliated with Tether.

“Chinese regulator can be easily pissed by this hope it won’t burn Tether ...,” Wan writes. “I don’t see enough demand for CNHT and alike, as local Chinese will still trade $USDT with CNY, if it’s CNH it will be the same as USD,” he adds.

She also notes that Deltec’s offshore accounts, which Tether is currently servicing, will be used to store assets in CHN.

Previously it was reported that Chinese people are actively using Tether stablecoin — USDT, the rate of which is pegged to the US dollar.

Tether also services the EURT stablecoin, pegged to the euro, but its capitalization is only €40 million against more than $4 billion from USDT.

The People’s Bank of China, meanwhile, is accelerating the development of the national digital currency. Presumably, the announcement of the cryptocurrency project Libra from Facebook, which is considered by its issuer as a global payment tool, could affect the change in the plans of the Central Bank of China.

Author: Marko Vidrih