China Will Likely Approve Yuan-Backed Stablecoin And Blockchain

Asia Blockchain Review
October 13, 2019
China Will Likely Approve Yuan-Backed Stablecoin And Blockchain

Zhao Dong, Bitfinex shareholder and CEO of RenrenBit, has revealed information about the Chinese yuan-pegged CNHT stablecoin, saying some of the biggest over-the-counter providers in China are actively supporting the blockchain-based cryptocurrency. According to Dong, the OTC providers will likely offer CNHT to meet demand. Another reason they support CNHT is that the currency is an offshore yuan-backed stablecoin, and so surveillance from the administering authority is not applicable.

Crypto Experts Have High Hopes on Stablecoin

“CNHT is pegged one-to-one to the offshore Chinese yuan and regardless of exchange rate,” Dong said, believing this would be the best choice for a rapidly growing user. He further noted that users in the Chinese market would find it easy to adopt valuation, trading and financial passes of CNHT,

The RenrenBit CEO also said liquidity in the trading market will be improved with CNHT, which will also benefit crypto startups. Additionally, he said approval of the Chinese central bank on blockchain and cryptocurrencies will make the market grow by leaps and bounds, downplaying the possibility that the approval will reduce the market share of CNHT.

An Investor-Friendly Cryptocurrency

With CNHT being introduced, many crypto players believe that the stablecoin will help investors to enter the industry more easily and benefit companies by helping them raise capital. On the user-friendliness of the stablecoin, Dong said, “CNHT lowers the threshold of user education from high above the ceiling down to the ground floor,” adding that it offers “a more reasonable way to establish value, trade and make an unimpeded financial pass for investments.”

The Bitfinex shareholder also said interference from exchange rate fluctuations would be limited by CNHT, which would help spur investment in the domestic capital market.


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