This Chinese government-backed company to launch a stablecoin
Grand Shores Technology a Chinese Company is developing a new stablecoin, which is about to hit the market by February 2019. The company is fund backed up by the Chinese government of Hangzhou, which is the capital of the Zhejiang Province.
Li Xiaolai has been appointed as executive director and co-CEO of the company. Known in China as a “bitcoin evangelist,” Li is said to be an experienced investor in numerous blockchain companies, including the Grand Shores Global Blockchain Ten-Billion Innovation Fund, which he helped to establish, and Inblockchain, which he also co-founded.
The board of Grandshores Technology explained that Li will mainly be responsible for various blockchain-related projects in which the company is involved, including the establishment of a “stable digital currency system focusing on mainstream international currencies.” This refers to a yen-pegged stablecoin that Grandshores Technology plans to launch by February 2019, sources close to the company told the South China Morning Post.
It is not clear why the company has chosen to focus on the Japanese currency rather than the Chinese yuan. However, it may have chosen the yen to avoid irking the Chinese central government, which might not be too happy to see a local government indirectly financing a yuan-pegged stablecoin.