One of BitFinex shareholders, Dong Zhao, announced on WeChat that Tether will soon launch a new stable cryptocurrency based on the Chinese yuan. Called CNHT, it is to be based on deposits held in a Belgian bank.
Don Zhao also said that his peer-to-peer crypto lending company, RenrenBit, will support transactions and deposits for CNHT when it is launched.
“Personally, I believe that a stable cryptocurrency based on offshore yuan could stimulate the circulation of the currency internationally. Such an approach would be appreciated by the authorities, “
China is preparing its own digital currency
Meanwhile, Chinese authorities are working on their own version of digital currency called “Digital Renminbi” (the official name of the Chinese currency). This will not be a cryptocurrency, but will have the role of facilitating international transactions and will be an interoperable system with crypto networks and other international payment networks.
Mu Changchun, deputy head of the Central Bank, said earlier this month that the currency is “almost ready” for launch. To begin with, it will be used in the Shenzhen Economic Zone, one of the most important production areas in the country.
According to the guide published by the authorities, the purpose is to:
“You support innovative applications, such as digital currency research and mobile payment in Shenzhen. Promote interoperability with Hong Kong and Macao financial markets and mutual recognition of financial products. “
Under these circumstances, the Tether stable cryptocurrency project could become a rival to the Chinese government’s plans. According to crypto-analyst Dovey Wan, the Tether plans will not be well received by the Chinese.
Currently, the Tether market cap is over $ 4 billion, and the daily volume of USDT transactions is often higher than the trading volume of Bitcoin. Both Dong Zhao and Dovey Wan expect demand for CNHT to be much lower.