“OKCoin USA Will Launch a Fully Compliant [Yuan-backed] Stablecoin,” Xu Star Says
OkCoin’s subsidiary in the United States is working to launch a stable coin backed in Chinese Yuan. This was announced by Xu Star, CEO of OKGroup in a tweet published on his personal account:
Embracing the tide of technology, the launch of a #CNY backed #stablecoin is an inevitable trend, and it will significantly improve the internationalization of the RMB. OKCoin USA will launch a fully compliant stablecoin.
RMB or Ren Min Bi (人民币) is the official name of China’s currency. It is internationally known as CNY or Chinese Yuan (¥) because this term is used in chinese to refer to monetary amounts. Generally, in the financial world, they are taken as synonyms, being used indistinctly in many cases.
According to Mr. Star, the future stable coin will be 100% law compliant, something of great importance for those who wish to use it to “freeze big capital.”
Star, who stated that the use of stable coin is an “inevitable trend” also considers that the issuance of a stable currency aimed at the Chinese market can strengthen that market in the same way as the dollar-pegged stablecoins have done.
Star says that the issuance of a Stablecoin does not differ much from the digital expressions of fiat money. In one of his tweets he explains his conception of a system in which there is complementarity between central banks and stablecoins as mechanisms for transmitting value:
#Stablecoin are in essence electronic cash. They have the same attributes. The central bank issues the currency and then it is distributed peer-to-peer. The difference is it's electronic. Today, the amount of cash in China's domestic monetary system is not small.
It is important to note that while The OkCoin team efforts are relatively new to the Chinese market, the interest in stablecoins on the part of large operators of financial services based on cryptocurrencies is growing.
Besides the issuance of the famous Tether (USDT) that dominates this market, other alternatives have emerged to capture a user base eager to enjoy the stability of banks and the decentralization and transparency of blockchain technologies.
In the western world, the appearance of TrueUSD marked an essential point in the relationship of exchanges with stablecoins, giving a breath of fresh air to this type of crypto asset that had recently received a strong mediatic blow as a result of accusations of fraudulent use.
Likewise, in the Japanese market, GMO, a Japanese multinational focused on crypto businesses and famous for the miners it offers in the market even started the issuance of a Yen-pegged cryptocurrency “GMO Japanese YEN (GJY)“