Tether cryptocurrency company is considering the release of another stablecoin, backed by the Chinese renminbi.
Tether is preparing to release a stablecoin-yuan
The Coindesk states that Tether is preparing to release a stablecoin that will be fully backed by the fiat yuan. Bitfinex crypto exchange trader and shareholder Zhao Dong revealed the information.
Zhao says that his company, RenrenBit, will provide the tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details and deposit of the newly created stablecoin. The reserves will be stored in one of the Belgian banks.
Interesting in the section: Tether, as an analog of the dollar
- Tether has already released two stablecoins. One is in US dollars; the other is in euros. Their total capitalization exceeds $4.4 billion, according to the company.
- Stablecoin is essentially a digitized fiat currency. Its rate is pegged to the value of the currency itself. The coin should be traded at the 1:1 ratio. That is, $1 = one stablecoin. The company must store "digitized" currencies in the reserves and pay them to investors on demand.
- Tether is constantly getting involved in scandals. The company cannot confirm that its reserves possess enough fiat money to cover all its stablecoins in circulation.
- It does not prevent Tether from being the most popular cryptocurrency among traders. USDT's daily trading volume is $20 billion, according to Coinmarketcap. By this indicator, USDT is the absolute leader. Bitcoin comes in second, with a trading volume of $18 billion.
Editor: Alyona Nabok