China May Introduce Yuan-Backed Stablecoin Within 3-5 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 integral to global trade and finance. Allaire made these remarks in an interview with Reuters in Hong Kong, highlighting a potential shift from speculative concepts to policy alignment. This development comes after Chinese officials began exploring the idea of a yuan-backed stablecoin in August 2025 to boost international adoption, marking a notable shift for a country that has banned cryptocurrency trading and mining since 2021. 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 China to successfully launch a yuan stablecoin, it would need to make the RMB fully convertible, allowing foreigners and markets to freely exchange yuan without government restrictions on capital flows. As of now, capital controls remain a key aspect of Chinese economic policy, and a stablecoin backed by the offshore yuan is distinct from one backed by the onshore yuan. The introduction of a yuan stablecoin ultimately depends on whether China views stablecoins as a viable solution or a commitment to policy change. The global stablecoin market is currently valued at nearly $315 billion, with privately issued dollar-pegged tokens dominating the market.