Stablecoin 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 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.
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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.