Tether Dominance in the East and Plans for a Digital Yuan Called CNHT
Bitfinex shareholder and over-the-counter (OTC) trader Zhao Dong has revealed that Tether is planning to launch a cryptocurrency backed by the Chinese renminbi. Tether has captured a market capitalization of over $4 billion to date. When the project first launched in beta in November 2014, the company said the flagship tether tokens would eventually represent three currencies: “UStether (US+) for United States dollars, Eurotether (EU+) for euros and Yentether (JP+) for Japanese yen.”
A great example of tether’s prevalence can be seen this week as most of the top 10 cryptocurrencies have dropped below their 200-day averages. Today, tether accounts for more than 75% of all BTC trades, 49% of ETH swaps, 40% for XRP, and 57% of all BCH trades. In July, cryptocurrency reporter Anna Baydakova discussed the demand for tether (USDT) with Chinese importers in Russia. According to Baydakova, the importers claim to be purchasing $30 million a day of tethers and between the Russian and Chinese border, USDT is the king of cryptos. The report detailed that prior to 2018, BTC was used by the importers, but since then they have switched over to utilizing the stablecoin.
“According to several Moscow OTC traders, it has at least one real-world use case – as the go-to remittance service for local Chinese importers,” Baydakova wrote at the end of July.
Not too long after Baydakova’s report on August 21, Zhao Dong discussed the possibility of a Tether product that represented an offshore yuan called CNHT. The prominent Bitfinex investor revealed the plan on the Chinese messenger and social media platform Wechat. Zhao Dong also claimed that when the stablecoin launches, his OTC business Renrenbit will support the newly minted CNHT. “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,” he said on Wechat. Zhao Dong also told the publication Chainnews the same information in regard to Tether launching a digital renminbi.