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

According to Circle CEO Jeremy Allaire, China may launch a yuan-backed stablecoin in the next 3 to 5 years, as the country seeks to increase the global presence of its currency. Allaire told Reuters that a yuan stablecoin would present a significant opportunity, particularly as digital currencies become more integral to international trade and finance. This prediction marks a shift from a speculative concept to a potential policy direction, with Chinese officials having explored the idea of a yuan-backed stablecoin since August 2025. The development of a yuan stablecoin would require Beijing to make the RMB fully convertible, allowing for unrestricted exchange of yuan without government limits on capital flows. However, experts note that without full convertibility, a yuan stablecoin is unlikely. Currently, the global stablecoin market is valued at nearly $315 billion, with dollar-pegged tokens dominating the market.