The USDT issuer Tether’ partner launched CNH₮ stablecoin to overcome the challenges of a traditional form of the Chinese Yuan.
Tether is the biggest stablecoin issuer company, which is a subsidiary of the popular crypto exchange Bitfinex. Due to the first mover advantage, the company is standing at the first rank in the crypto sector. Perhaps the company is standing at the first rank in the race of stablecoin companies but this company faced huge criticism over its lack of information about the reserved funds behind USDT.
Recently Capital Union launched CNH₮ stablecoin which is fully backed by 1:1 Chinese Yuan currency. Capital Union is an international boutique financial institution which is situated in the Bahamas. The funds behind CNH₮ stablecoin will be managed by Tether.
This newly launched Chinese Yuan pegged stablecoin aimed to provide easy & fast China Yuan transactions to any place without any dependency on third-party centralised companies.
As we know that China is a fully crypto hater country and cryptocurrency use is strictly prohibited in the Chinese jurisdiction but still, this stablecoin is fully compliance based without any issue of regulatory restrictions. This stablecoin will remain available on OKEx and Huobi digital assets exchange.
With the launch of CNH₮, the Tron blockchain network welcomed the first official launch of the third-party stablecoin. While the Tron blockchain has its stablecoin USDD but CNH₮ is a third-party stablecoin that was directly launched on the Tron blockchain.
Earlier this on 2 December, John Reed, the former SEC official took to Twitter to criticise Tether over its lack of disclosure about its reserved funds.
Reed said that Tether is running a Ponzi scheme without telling other people about its scam.