China May Introduce a Yuan-Backed Stablecoin Within 5 Years, Says Circle CEO

According to Circle CEO Jeremy Allaire, China has a significant opportunity to launch a yuan-backed stablecoin, which could happen within the next three to five years as digital currencies become increasingly integrated into global trade and finance. This prediction marks a shift from a speculative idea to a more concrete policy alignment, with Chinese officials having explored the concept of a yuan-backed stablecoin since August 2025. Allaire has been advocating for stablecoins as a means to internationalize the RMB since 2023, arguing that they could outperform central bank digital currencies. However, for a yuan stablecoin to be launched, China would need to make the RMB fully convertible, allowing for unrestricted exchange of yuan and eliminating capital flow restrictions. Currently, capital controls remain a key aspect of Chinese economic policy, and a stablecoin backed by the offshore yuan would be distinct from one backed by the onshore yuan. The timeline for a potential launch hinges on whether China views stablecoins as a viable solution or a long-term commitment. The global stablecoin market is currently valued at nearly $315 billion, with dollar-pegged tokens dominating the market.