Tether Explores Two New Stablecoins – China And Facebook’s Libra May Have Competition
The stablecoin Tether seems to be considering to launch two new cryptos.
One of them will reportedly be pegged to commodities such as gold and crude oil, according to the latest reports coming from the Daily Hodl.
The other one would be pegged to the official currency of the People’s Republic of China, the renminbi.
Bitfinex shareholder Zhao Dong talked about the issue to Cointelegraph and said that the sister company Tether plans to lower the risk which is involved in creating stablecoins that are only backed 1:1 by fiat currency in banks.
Tether was faced with various accusations
You may recall that Tether has been faced with various accusations that the leading stablecoin USDT is not entirely backed by the US dollar.
The concerns have been addressed by Dong who called reports denying the currency’s reserves “fake news.”
“Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with its LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month)…” Dong said.
Dong continued and said that “Even if you don’t calculate this 650 million as reserves, the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.”
China plans to launch its very own digital asset
Tether’s announcement regarding the launch of two new coins comes after China said that they are planning to launch their own crypto.
Not too long ago, it was reported that People’s Bank of China (PBOC) is planning to launch a state-backed cryptocurrency by the end of the year.
The Daily Hodl reports that Shanghai Securities News revealed that the upcoming cryptocurrency was announced in a closed-door PBOC planning session.