Ikenna Uwakwe has been a writer since he could hold a pen. Having a lot of literary works in his portfolio including Poems, Articles and Essays. He enjoys a natural likeness for anything related to technology. His Educational background includes computer science and programming. As a seasoned cryptocurrency enthusiast with a professional writing career path of over two years of blogging for blockchain related companies. Working with various Fintech startups in the past, has aided him to better understand what IT proponents as well as financial Investors look out for.
At the wake of an increased patronage for stablecoins, Tether adds yet another stablecoin to its repository, unveiling that this new ‘CNHT’ stablecoin would be tied to the offshore Chinese Yuan.
Tether – the foremost yet controversial distributor of stablecoins, which has a wider network outreach than any other stablecoin in the market today including blockchains as Omni, Ether, Tron and EOS, recently announced the launch of a new stablecoin. This new cryptocurrency tagged ‘CNHT’ is pegged directly to the offshore Chinese Yuan (CNH).
‘CNHT’ appears to be the fourth stablecoin to be listed under the Tether platform in addition to three other stablecoins pegged to the following fiat currencies as U.S. dollar (USDT), Euro (EURT) and the Japanese yen (JPYT).
According to a press release on Wednesday, ‘CNHT’ stablecoin would be launched ‘in the near future’. This statement was disclosed by the CEO of RenrenBit, Zhang Dong to ChainNews (originally published in Mandarin). Dong, one of the shareholders of Tether’s affiliate exchange platform – Bitfinex, affirms this adding that his crypto lending firm – RenrenBit would be the first to invest in the ‘CNHT’ stablecoin.
Onshore and Offshore Yuan (¥)
Stablecoins enjoyed an increased funding in 2018, with the involvement of industry key players such as Huobi, StableUSD, Monerium, Stronghold, TokenX, Celo, TerraX, Paxos and USD coin. Furthermore, in the spirit of this trend, eToro recently launched an onshore yuan-backed stablecoin with the ticker “CNYX”, onto its eToroX exchange platform.
Hence for the purpose of this piece, it becomes necessary to emphasize such terminologies as an onshore (CNY) and offshore (CNH) Yuan. The contrast between the two is quite simple. Whereas the onshore Yuan trades under the control and jurisdiction of the People’s Bank of China, the offshore Yuan is unregulated and trades on foreign currency markets. With each yuan having its unique exchange rate.
Even though renowned for producing the first-ever stablecoin – USDT in 2014, iFinex, the parent company of Tether alongside its sister companies has suffered numerous controversies in recent times. Not long ago, the New York Office of the Attorney General (NYAG) filed a complaint against the proprietors of the Bitfinex exchange.
The case was brought before the New York Supreme Court. iFinex was charged on the count of misappropriation of public funds. Leaving the Hong-Kong fintech company with no other choice than to file a counter-motion in dismissal of this claim right after.
This counter-motion was however dismissed on Monday by the Acting Justice of the New York State Supreme Court Judge Joel M. Cohen, who denied the defendant’s proposition while passing judgement, saying:
“The Court disagrees with the Petitioner that it is (or can be) premature for the Court to determine whether it has jurisdiction to issue orders impacting the rights of Respondents in this proceeding. That said, the Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter. Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”