USDC issuer hints call on Beijing to release developers of digital offshore yuan
Date: 2023-07-11 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
The issuer of the stablecoin USDC called on the Chinese authorities to see the advantages in the Chinese stablecoin, and not to arrest the developers of the technology
China is unlikely to lift the ban on cryptocurrency on the mainland, but Beijing can still make an exception for stablecoins. This opinion was expressed by Circle CEO Jeremy Allaire in an interview with the South China Morning Post (SCMP). According to Allaire, a stablecoin pegged to the yuan can do much more good for China than the digital yuan itself.
"If the Chinese government ultimately wants the yuan to be used in trade and commerce around the world more freely, perhaps stablecoins are better suited for this than a central bank digital currency," Allaire said.
As a successful example of such a stablecoin, Allaire referred to an offshore digital yuan called CNH Coin (CNHC). In March, the editors wrote that the project raised $10 million from KuCoin Ventures and Circle Ventures. The terms of the investment were not disclosed, but the venture capital firm IDG Capital also entered the pool of investors.
In May, the media reported on the detention of CNHC developers in Shanghai. As PANews journalists found out, the local office of the project was sealed by the authorities. At the same time, according to TechFlow, the arrest is not related to the stablecoin. Journalists claim that the developers of CNHC before the creation of the stablecoin conducted shadow operations in the amount of $ 15 billion, converting the US dollar into the yuan. According to SCMP, the authorities have not yet given any public comments on the arrest of the creators of CNHC.
As the developers of the stablecoin claimed, CNHC is "fully collateralized" and pegged to the offshore Chinese yuan at a ratio of 1:1. One of the options for using the stablecoin was to conduct trading operations for Chinese exporters. The stablecoin was issued on two blockchains: Ethereum and Conflux (developed by KuCoin).
At the same time, TechCrunch noted that the stablecoin did not receive approval from the Hong Kong financial regulator to work in the region. The audit of the project is also not available for public scrutiny.
