According to Circle CEO Jeremy Allaire, China may launch a yuan stablecoin in the next three to five years, as digital currencies increasingly integrate into international trade and finance. Allaire made this statement to Reuters in Hong Kong, emphasizing the vast potential for such a stablecoin.
This prediction comes after Chinese officials reportedly explored the concept of a yuan-backed stablecoin in August 2025 to enhance its global adoption, marking a significant shift in the country's stance on cryptocurrency, which has been banned since 2021. Allaire has been advocating for stablecoins as a means to internationalize the RMB since at least 2023, arguing that they could surpass central bank digital currencies in this role. However, for China to introduce a yuan stablecoin, it would need to make the RMB fully convertible, allowing foreigners and markets to freely exchange yuan without strict government restrictions on capital flows.
As of now, capital controls are a crucial aspect of China's economic policy, and a stablecoin backed by the offshore yuan (CNH) differs significantly 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 valued at nearly $315 billion, is predominantly comprised of privately issued dollar-pegged tokens like Tether USDT and USD Coin (USDC).