China May Introduce a Yuan-Backed Stablecoin Within 3-5 Years, According to Circle CEO

In a recent statement to Reuters in Hong Kong, Circle CEO Jeremy Allaire expressed his belief in the potential for a yuan-backed stablecoin, predicting that China could launch one within the next three to five years as digital currencies become increasingly integrated into global trade and finance. This marks a significant shift from a speculative idea to a more policy-aligned concept. As reported by Reuters in August 2025, Chinese officials have been exploring the possibility of introducing a yuan-backed stablecoin to boost its international adoption, a notable development for a country that has banned cryptocurrency trading and mining since 2021. Allaire has been advocating for this idea since at least 2023, arguing that stablecoins could outperform central bank digital currencies in promoting RMB internationalization. However, for China to successfully launch a yuan stablecoin, it would need to achieve full convertibility of the RMB, allowing foreigners and markets to freely exchange yuan without strict government restrictions on capital flows. Currently, capital controls remain a crucial aspect of Chinese economic policy, and a stablecoin backed by the offshore yuan (CNH) would be distinct from one backed by the onshore yuan (CNY). The feasibility of Allaire's timeline depends on whether China views stablecoins as a viable workaround or a long-term commitment. The global stablecoin market, currently worth nearly $315 billion, is dominated by privately issued dollar-pegged tokens such as Tether USDT and USD Coin (USDC).