The digital RMB was originally benchmarked against USDT. The reason why USDT became popular was that many virtual currency exchanges had difficulty obtaining USD recharge channels at the beginning, so a company called Tether started this business. One dollar can be exchanged for one digital dollar, that is, USDT. USDT does not have its own blockchain. It is a secondary asset built on basic blockchains such as Bitcoin, Ethereum, and Tron. With USDT, you can recharge in many exchanges and buy and sell digital currencies such as Bitcoin. Most users do not exchange USDT directly from Tether, but from some merchants operating USDT, directly exchanging USDT with various legal currencies including RMB. Of course, USDT can also be sold for RMB, and the merchants will have a commission. Compared with centralized exchanges, it is much more difficult to block the bank accounts of decentralized merchants. Therefore, it is the strong demand in the currency circle that stabilizes the value of USDT. Of course, some foreign trade people also began to use USDT because of the obstacles to foreign exchange conversion.
From the history of USDT, although it can be regarded as a digital extension of the credit of the US dollar, it is not a legal tender issued by the US government, but a token issued by a private company. Its original purpose was not to enhance the credit of the US dollar, but to circumvent the restrictions on the legal tender recharge channels for virtual currency transactions. It is precisely because of the strong demand in the currency circle that USDT can truly succeed.
The digital RMB is completely confusing. Who is the target user of this product?
