Tether Ends CNH₮ Stablecoin Support, Halts Minting Immediately

Highlights:

• Stablecoin firm, Tether, said it will no longer support CNH₮.
• The company noted that it will focus more on products with demonstrated growth potential. 
• Tether has stopped minting CNH₮ and encouraged holders to redeem the token as soon as possible. 

The world’s largest stablecoin issuer, Tether, has announced that it will no longer support its offshore yuan stablecoin (CNH₮). The company disclosed the move in a press release on February 20, citing low adoption and weak market demand. In the announcement, Tether revealed that it regularly assesses all its products to ensure that they are safe, relevant, and worth maintaining.

The company emphasized that every token it supports must attract significant interest. If any token fails to meet any of these standards, the company may decide to end its support for such product.

Following its most recent review, Tether reported that CNH₮’s performance is below the expected standard. According to the stablecoin company, CNH₮ has recorded limited long-term adoption compared to other stablecoins. Because of this, continuing to operate and support it no longer makes sense from a business and operational point of view.

Rationale for Ending Support for CNH₮

Tether noted that the shutdown will happen in two stages. The first step involves ending minting operations for CNH₮. The company has already stopped minting the stablecoin, which means that no additional token supply will enter the market.

Lastly, Tether will allow redemptions for an additional year. Once this window elapses, CNH₮ will no longer be redeemable. The stablecoin company, however, noted that it will send an official notice to serve as a reminder before the final deadline. 

Tether encouraged users who are still holding CNH₮ on any supported blockchain to redeem the token as soon as possible. “Until the redemption deadline, Tether will continue to redeem CNH₮ as usual and subject to Tether’s Terms of Service,” the stablecoin company added. 

Tether Reiterates Support for Other Stablecoins

The stablecoin company explained that its decision to cease support for CNH₮ does not signify a shift away from stablecoins. The company noted that it wants to focus on only products with strong and steady adoption. Tether also noted that it will always remain transparent in issues relating to token support. 

The company stated:

Tether Continues to Show Support for Stablecoins and Other Crypto Projects

Notably, the move to stop support for CNH₮ comes a few days after Tether announced plans to integrate its made-in-America stablecoins (USA₮) into Rumble Wallet. The integration allows content creators to receive payments via a digital stablecoin. This creates an effective and decentralised payment platform, eliminating the need for traditional banks and payment processors. 

Before the integration, the Rumble Wallet already supported popular cryptocurrencies like Bitcoin (BTC) and Tether (USDT). USA₮ will become the new addition, offering content creators more reliable options. Notably, USA₮ is a domestic stablecoin, regulated by the US authorities. This confers an extra layer of trust and security for users. 

Elsewhere, Tether announced the release of a new operating system for Bitcoin mining. According to the stablecoin firm, the software is open-source and publicly available, targeting mining operations at varying levels. The system will serve as an alternative to the more regular proprietary platforms that are dominating the mining sector. 

What Does Tether’s Move Signify?

Tether’s decision to end support for CNH₮ shows that even large crypto platforms can decide to stop promoting products that are performing below a set standard. It is also a reminder that all stablecoins are not equal in terms of reliability and longevity. Overall, the move highlights the need for crypto-related products to attract users based on the values they offer.