Tether might launch the CNHT Token, a stablecoin indexed to the Chinese Yuan!
Tether, the issuer of the USDT token, which is the Crypto Dollar’s main counterpart as a stablecoin, would therefore be preparing to launch a new Chinese Yuan-pegged stablecoin in order to add a new stablecoin of choice to its existing offering well developed on the stable cryptocurrency market.
According to the Chinese news site ChainNews, the CNHT token will be launched soon, although no official date has been provided.
Zhao Dong, a shareholder in Tether’s sister company Bitfinex, is one of its investors.
For the uninitiated, Tether is a subsidiary of iFinex, the parent company to which Bitfinex belongs.
Zhao further revealed that the first investment in CNHT would come from its own management platform, RenrenBit.
Will this project of Tether provoke a Chinese answer?
If these speculations are true, CNHT will be the fourth stable coin in the Tether portfolio, which currently consists of three crypto currencies pegged to the Euro, Japanese Yen and USD.
Interestingly, there is already speculation that this new Tether initiative could seriously disrupt the Chinese authorities.
And this is not a surprise when you see the reactions of some governments following the Facebook project Libra or the Prosecutor of New York who is after Tether (USDT) knowing that Tether (USDT) still counts for $4 billion on the crypto market!
Therefore, doing the same with the Chinese national currency, the Chinese government may react but not positively for Tether and its shareholders.
Unregulated cryptocurrencies such as Bitcoin (BTC) have long been disapproved by the People’s Bank of China (PBoC), the country’s highest banking authority.
The PBoC, however, is still on the verge of launching its own cryptocurrency, which, according to deputy chief of payments, Mu Changchun, will be structurally more complex than most unregulated cryptocurrencies.
It will be interesting to see what will happen next if Tether actually launches a stablecoin indexed to the Chinese Yuan.
There is currently a lot of news that came shaking up the financial world and its national currencies.
Between Donald Trump and his trade war with China or Fintech companies who want to compete with national currencies like the Dollar or the Chinese Yuan by launching an equivalent in cryptocurrency.
The upcoming launch of this CNHT token will therefore shake the Chinese government which was quietly preparing its own cryptocurrency.
