Tether LIKEs CNH, Stablecoins Whose Value Is Bound By China Offshore Yuan

Tether published CNHT stablecoins. (Photo; Doc. Crypto Watch)

JAKARTA The leading stablecoin publisher, Tether, has officially released another stable coin whose value is pegged to the offshore price of China's Yuan. For information, CNH is different from China's official CNY currency which is traded domestically. Meanwhile, CNH is traded outside mainland China such as Hong Kong, Macau, Singapore, and others.

On the other hand, mainland China has strict rules regarding the ban on the use of cryptocurrencies including stablecoins. However, areas outside the RRC region as mentioned above are open to the crypto industry. This allows Tether to issue a CNH stablecoin with a value tied to CNH.

With the launch of CNH, Tether continues to expand its series of digital stablecoins consisting of USDT, EURT, and MXNT. All of this is intended to enable the global economy to quickly, securely, and cost-effectively transfer money.

CNH is designed to be a digital representation of the Chinese Yuan, and is supported by 1:1 by a reserve currency. The reserve is managed by Tether partner Capital Union, a leading international boutique financial institution based in the Bahamas. The Capital Union is also responsible for reserve guarding and audits.

The company says one of CNH's main advantages is to enable cost-effective and secure transactions in Chinese Yuan and eliminate the need to pay a huge transaction fee when sending CNY across the border, as CNH can be delivered almost instantly and without the need for an intermediary.

In addition, CNH is fully in accordance with Chinese regulations and available on multiple exchanges, including OKEx and Huobi. It is the first stablecoin to be launched on the Tron blockchain and is meant to provide a more efficient and cost-effective way for people to transact between different currencies.

The launch of this new stablecoin is expected to increase liquidity and reduce transaction costs for those who use it. It will also make it easier for users to access Chinese Yuan and other international currencies, reported by CryptoSlate.