A‑Z of Tether’s latest rollout on the Tron network

Please fol­low and like us:
Pin Share

  • 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, 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 has opt­ed for this move.

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

At the time of writ­ing, Tron was one of the fastest and effi­cient blockchain net­works. This may explain why Teth­er opt­ed to roll­out CNHT using Tron.

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

Seeking clarity behind the motive

A 2019 report from Diar revealed that Chi­na account­ed for a large pro­por­tion of glob­al sta­ble­coin demand. Chi­na strict mon­e­tary pol­i­cy may have had some­thing to do with this and cryp­to, as well as sta­ble­coins. They have been con­duits through which Chi­nese peo­ple have been mov­ing their funds out of Chi­na. This is why Chi­na main­tained an aggres­sive stance against cryp­tocur­ren­cies in the last few years.

The avail­abil­i­ty of the Chi­nese Yuan on the cryp­to space as CHHT may help meet China’s strong demand for sta­ble­coins poten­tial­ly through P2P trading.

Will Tether face backlash for this move?

The fact that it is an off-shore sta­ble­coin ver­sion of the Chi­nese Yuan may attract some atten­tion from Chi­na. How­ev­er, the off-shore aspect means Chi­na will like­ly not do much about it.

Teth­er is not new to crit­i­cism about its oper­a­tions. Nev­er­the­less, the com­pa­ny has been mak­ing efforts to alle­vi­ate poten­tial risks that have pre­vi­ous­ly been the sub­ject of criticism.

Some of the high-pro­file indi­vid­u­als that have pre­vi­ous­ly crit­i­cized Teth­er are rec­og­niz­ing the cryp­to company’s efforts. One of them is Ethereum founder Vita­lik Buterin whose lat­est opin­ions about Teth­er were sur­pris­ing­ly positive.

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



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *