Tether Limited announces digital currency backed by the yuan
Hong Kong continues to expand its list of digital currencies by launching CNHT, linked directly with the Chinese yuan offshore
As it happens with the Tether cryptocurrency backed by a US dollar and managed in the digital market by tokens issued by Tether Limited, the CNHT will be issued by an ERC20 token at the top of the Ethereum blockchain.
The creation of this cryptocurrency would be referring to a digital element capable of eliminating the need to exchange yuan whenever the client wants to buy or sell bitcoins, becoming the largest representation in the expansion of Tether’s capabilities to facilitate the digital use of traditional currencies.
In April 2018, the chief legal officer of the State of New York filed a complaint against Tether Limited’s close partner, BitFinex, for allegedly incurring the loss of $ 850 million when borrowing from Tether’s dollar reserves.
Faced with this accusation, Tether Limited’s lawyer admitted that the client unbalanced the dollar’s fixation after administering more than $ 850 million to BitFinex, which made USDT $ 0.26 cheaper than Tether. This event did not shake the confidence of traders in the stable currency, due to the growing demand evidenced during the rise of bitcoin price this year.
With the launch of this digital currency, Tether has generated a high impact on the market, a strategy that can hamper the cryptocurrency industry in China, given that the country’s regulators would do everything possible to curb the growth of CNHT.
K.Villarroel
Source: criptomonedaseico
