According to Circle CEO Jeremy Allaire, China may launch a yuan-backed stablecoin in the next 3-5 years, as digital currencies become increasingly integral to global trade and finance. Allaire made these remarks to Reuters in Hong Kong, highlighting the significant potential for such a stablecoin. This prediction comes after Chinese officials reportedly explored the idea of a yuan-backed stablecoin in August 2025 to boost its international adoption. Notably, China had previously banned cryptocurrency trading and mining in 2021.
Allaire has been advocating for stablecoins as a means to internationalize the RMB since 2023, arguing they could outperform central bank digital currencies. However, for a yuan stablecoin to be viable, China would need to make the RMB fully convertible, allowing for unrestricted exchange of yuan. As of now, capital controls are a crucial aspect of China's economic policy, making it challenging to introduce a stablecoin backed by the onshore yuan. The global stablecoin market is currently valued at nearly $315 billion, with dollar-pegged tokens dominating the market.