January 28, 2023

  • Tether plans to roll out the Chinese Yuan on the Tron network
  • Tether’s future plans include rolling out digital versions of existing fiat currencies

Tether, the crypto company that created the USDT stablecoin, has announced plans to launch its offshore version of the Chinese Yuan on the Tron network. An evaluation of this rollout from different angles may reveal something interesting about why Tether chose this move.

First of all, this is not the first time that the offshore Chinese Yuan, known as CNHT, has seen the light of day. It has been around since 2019 and has existed as an ERC20 token on Ethereum ever since [ETH]. However, Ethereum has a history of high fees and may have hindered the usefulness of CNHT, among other things.

At the time of writing, Tron was one of the fastest and most efficient blockchain networks. This may explain why Tether chose to roll out CNHT with Tron.

But more importantly, the move underlined an effort to expand the token’s availability across more networks. But why did Tether only now choose to expand the availability of the offshore version of the Chinese Yuan?

Looking for clarity behind the motive

A 2019 report from Diar revealed that China accounted for a large share of global stablecoin demand. China’s strict monetary policy may have had something to do with this and crypto, as well as stablecoins. They have been channels through which Chinese have taken their money out of China. This is why China has taken an aggressive stance against cryptocurrencies in recent years.

The availability of the Chinese Yuan in the crypto space as CHHT could potentially help meet China’s strong demand for stablecoins, possibly via P2P trading.

Will Tether face any backlash for this move?

The fact that it is an off-shore stablecoin version of the Chinese Yuan may draw some attention from China. However, the offshore aspect means China probably won’t do much about it.

Tether is not new to criticism of its activities. Nevertheless, the company has made efforts to mitigate potential risks that have previously been the subject of criticism.

Some of the high-profile individuals who have previously criticized Tether acknowledge the crypto company’s efforts. One of them is Ethereum founder Vitalik Buterin whose latest opinions on Tether have been surprisingly positive.

Tether also showed its intention to roll out more digital versions of existing global fiat currencies. A recent announcement confirmed that the company plans to release its version of the euros on Huobi Global.

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