CNHT is the latest fiat currency-backed stablecoin released by Tether, following USDT and EURT.
Hong Kong-based Tether Limited has added an offshore Chinese yuan-backed digital currency to its growing list of stablecoins, the firm revealed Monday.
Called CNHT, the new stablecoin is pegged one-to-one to the offshore Chinese yuan, which pertains to the yuan outside Mainland China. It will initially run on the Ethereum blockchain as an ERC-20 token.
The firm said in its short announcement:
“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).”
CNHT is the latest fiat currency-pegged digital coin from Tether to have been launched, following USDT and EURT. While the firm provided a contact address for the new stablecoin, it did not reveal further information about the new stablecoin, specifically the crypto exchanges that will list CNHT.
The launch of CNHT, however, generates mixed reactions from the crypto community.
A CoinDesk report quoted Bitfinex shareholder Zhao Dong, who is also an over-the-counter trader in China, as saying:
“Personally, I think the offshore yuan stablecoin could boost the circulation of offshore renminbi and internationalize it. Regulators may be happy to see it proceed and succeed.”
Another report, meanwhile, stressed that the attention CNHT will generate may alarm Chinese regulators, which may negatively affect the crypto community in China.
The launch of the Tether’s CNHT came ahead of the introduction of China’s own PBoC-backed digital yuan.
At the time of writing, the USDT/USD pair trades at $1.00, which is 0.24 percent lower in the past 24 hours.