By George Ward
The world’s largest stablecoin issuer, Tether, recently announced the integration of the off-shore Yuan stablecoin, CNHT, on the Tron network. In addition, Bitifinex will become the first crypto exchange to support transactions with the newly built stablecoin.
The stablecoin issuer launched its first Yuan-pegged stablecoin in 2019 on the Ethereum network. The new development will see Tron become the second blockchain where the CNHT will be traded, as revealed by the company.
According to Tether’s CTO, Paolo Ardoino, the move aims to drive the crypto market in the right direction despite the recent market correction.
“At a time of extreme turmoil for the crypto market, the best way forward for the industry is to keep building and assuring the community that things will turn out better.”
Keeping A Tight Control On Fiat And Digital Currencies
Meanwhile, the People’s Bank of China, the Chinese central bank, has kept a tight rein on the national currency under the managed floating exchange rate model the country has been using since 2005.
In May last year, the director of the Chinese central bank’s Finance Research Institute, Zhou Chengjun, revealed that China had to allow the free floating of the Yuan to position it as a global currency like the USD or Euro.
Similarly, another bank executive debunked rumors that the central bank plans to change the exchange rate model. Moreover, a researcher at the Chinese Academy of Engineering, Zhang Ping, suggested in September that the country consider issuing a Yuan-backed stablecoin.
Ping opined that the new Yuan-pegged stablecoin would beef up the on-chain payment gateway for the Chinese Metaverse project. This is also in line with the country’s plan to build its technology and infrastructure in the interest of national security.
Recently, Tether announced that two of its stablecoins, Tether Gold and European Tether, had been listed on the Huobi Global crypto exchange. Meanwhile, there are still speculations over Tether’s exposure to the recent FTX crash. However, Tether continues to deny the assumptions.