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Tether’s Offshore Chinese Yuan Stablecoin: An Alternative to USDT for BRICS Nations? Will Tether’s Chinese Yuan Stablecoin Replace USDT in Market Cap as BRICS Nations Reduce Reliance on US Dollars? Is This a Solution for BRICS Nations Who Do Not Want to Trade in US Dollars or Stablecoins Backed by US Dollars? In 2024, BRICS nations can now use a Chinese Yuan Stablecoin instead of stablecoins backed by USD. Created by Tether, the creator of USDT, BRICS nations and allies have an alternative stablecoin to use that is backed by the Chinese Yuan. Below excerpt article reported by Omogiafo. H. (2024, March 6). Top 10 Cryptocurrencies by Market Cap. Koody "Tether was launched in 2014 and is the third-biggest cryptocurrency in the world by market capitalization after Bitcoin and Ethereum." "Tether’s creators claim that every Tether token is 100% backed by reserves, including traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties." “Tether is not only available in US dollars. It is also available in euros (EUR₮), offshore Chinese yuan (CNH₮), and gold (XAU₮).” To read full article, click here Some of the possible advantages of Using an Offshore Yuan Stablecoin Backed by Chinese Currency Instead of USDT Backed by USD: Diversification of Reserve Assets: By opting for an offshore Yuan stablecoin backed by Chinese currency, users can diversify their reserve assets beyond reliance on the US dollar. This reduces exposure to currency risk associated with fluctuations in the value of the USD. Geopolitical Independence: The stablecoin not affiliated with the US governments “US dollars” and can offer users a sense of geopolitical independence and autonomy in their financial transactions. This can be particularly appealing to entities seeking to reduce dependence on USD-dominated financial systems. Reduced Regulatory Risk: Since the stablecoin is backed by Chinese currency, registered outside the US, does not involve any US Government oversight and operates offshore, it may be subject to different regulatory frameworks compared to USD-backed stablecoins. This can potentially mitigate regulatory risks associated with US financial regulations and policies. Alignment with BRICS Nations’ Goals: The adoption of an offshore Yuan stablecoin aligns with the goals of BRICS nations to diversify their reserve currencies and reduce reliance on the USD-dominated financial system. It promotes greater financial sovereignty and cooperation among BRICS member states. Access to Chinese Markets: Utilizing an offshore Yuan stablecoin provides users with easier access to Chinese markets and investment opportunities. It facilitates cross-border transactions with China and enhances financial connectivity between global markets and the Chinese economy. Image by DilokaStudio on Freepik Legal Disclaimer: INFYNIT is providing the content here for educational purposes only. All opinions are of the original author and not an opinion of INFYNIT or any of its affiliates. #GlobalNews #Crypto #Cryptocurrency #Yuan #stablecoin #China #BRICS #Chinese #USD #Stablecoins #Currencies
