China May Introduce a Yuan-Backed Stablecoin Within 3-5 Years, Says Circle CEO

According to Circle CEO Jeremy Allaire, China may launch a yuan-backed stablecoin in the next three to five years, as digital currencies increasingly integrate into global trade and finance. This prediction was made during an interview with Reuters in Hong Kong, where Allaire highlighted the significant opportunity for a yuan stablecoin. The concept has shifted from a speculative idea to a potential policy alignment, following reports in August 2025 that Chinese officials were exploring a yuan-backed stablecoin to boost international adoption. Allaire has been advocating for stablecoins as a means to internationalize the RMB since at least 2023, arguing that they could outperform central bank digital currencies. 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 remain a crucial part of Chinese economic policy, and a stablecoin backed by the offshore yuan is distinct from one backed by the onshore yuan. The decision to launch a yuan stablecoin ultimately depends on whether China views stablecoins as a workaround or a long-term commitment. The global stablecoin market is currently worth nearly $315 billion, with privately issued dollar-pegged tokens dominating the total value.