New findings have revealed that controversial stablecoin issuer, Tether, is seemingly working on a new stablecoin project dubbed “CNHT”. The new stable coin will be pegged to the offshore Chinese official fiat currency Renminbi (RMB/CNY).
This was confirmed today by Zhao Dong, a shareholder at Bitfinex, a cryptocurrency exchange owned by iFinex Inc., which is also the parent company of Tether. Dong is also the founder of the digital asset management platform RenrenBit. He revealed that “his company would be one of the first to invest and test the upcoming CNHT stable coin which will be launched in the near future.”
Despite that Tether is yet to make an official announcement, further research shows that the stable coin had been already working on its Chinese stablecoin since April, according to information on EtherScan block explorer rightly revealed.
The details of the new stable coin on Etherscan shows that the token has a total supply of 10,000,000 CNHT held in a single smart contract address.
Chinese Regulation’s Question Marks
With the People’s Bank of China (PBoC) edging closer to launching its official Central Bank Digital Currency (CBDC), that would act as a digital Yuan both within and outside the country, Tether may struggle with getting regulatory approval for its CHNT stablecoin.
Besides, even if Tether will receive an approval for the CNHT, the stablecoin may not be as successful as the USDT as almost all the crypto trading platforms in China currently have support for the USDT’s Tether.
Despite issuing the largest stablecoin by market cap, the Tether has spent its four years of existence battling a lot of scandals. From accusations of manipulating Bitcoin price in 2017 and not having a full audit on Tether to burning 500 million USDT in 2018. Added to the above, is the ongoing investigation by the NY Attorney General’s office, which is going after iFinex, the parent company of Tether and BitFinex.