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

According to Circle CEO Jeremy Allaire, China is poised to launch a yuan-backed stablecoin in the next three to five years, as the country seeks to integrate digital currencies into global trade and finance. This prediction comes as a significant shift from a speculative idea to a potential policy alignment. In 2025, Chinese officials were reportedly exploring the concept of a yuan-backed stablecoin to boost international adoption, marking a notable change in the country's stance on cryptocurrency. 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 become a reality, China would need to make the RMB fully convertible, allowing for unrestricted exchange of yuan without government restrictions on capital flows. Currently, capital controls remain a crucial aspect of Chinese economic policy, making a stablecoin backed by the onshore yuan (CNY) challenging to implement. The global stablecoin market, valued at nearly $315 billion, is predominantly comprised of privately issued dollar-pegged tokens such as Tether USDT and USD Coin (USDC).