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China’s CBDC development sign of country approving blockchain & cryptocurrency, claims RenrenBit’s Zhao Dong

Biraajmaan Tamuly

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Zhao Dong, Bitfinex shareholder and CEO of RenrenBit, was in the news last month after he revealed details about the stablecoin CNHT. Dong is in the news again after he was interviewed about his company, CNHT and its implications for the market.

There are many in the cryptocurrency space who believe that the introduction of CNHT will make it easier for investors to enter the industry, helping companies grow and raise capital for their projects. However, Bitcoin’s price action correlation with Tether printing is a widely discussed topic between traders too, making many in the space wary of CNHT’s future.

According to Dong, RenrenBit core members, the biggest OTC providers in China, have always been firm supporters of USDT. They are positive about its future and plan to offer it to meet market and user demand, he said. With CNHT being an offshore yuan-backed stablecoin, the administering authority will not take duty over its surveillance, nor its risk, the CEO added.

Dong went on to talk about how the stablecoin would be quite user-friendly to the Chinese market in terms of valuation, trading and financial passes.

“CNHT is pegged one-to-one to the offshore Chinese yuan and regardless of exchange rate, it would be the best choice when we have a rapidly growing user base that is ten times larger than what we currently have.”

The Bitfinex exchange shareholder also added that the stablecoin would help eliminate interference brought by exchange rate fluctuations and further encourage domestic capital to make investments.

“CNHT lowers the threshold of user education from high above the ceiling down to the ground floor. It provides a more reasonable way to establish value, trade and make an unimpeded financial pass for investments.”

Dong went on to add that CNHT brings liquidity to the trading market and is a safe space where every crypto-startup will benefit.

When asked about China’s central bank digital currency, Dong said that it is too early to make any conclusions. He concluded by stating that though the digital currency is still being designed, it shows the approval of the central bank towards blockchain and the cryptocurrency industry. Dong believes that it will bring another big growth phase to the market, rather than affecting CNHT’s market share.

Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.