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 stablecoin in the next three to five years, as digital currencies become increasingly integral to global trade and finance. Allaire made this prediction during a conversation with Reuters in Hong Kong, highlighting the significant potential for a yuan-backed stablecoin. This development marks a shift from a speculative concept to a more concrete policy alignment. In August 2025, Reuters reported that Chinese officials were exploring the possibility of a yuan-backed stablecoin to boost its international adoption, a notable change in stance 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 at least 2023, arguing that they could outperform central bank digital currencies. However, Beijing's stance at the time seemed firmly opposed, with authorities arresting individuals linked to an offshore yuan stablecoin and later reiterating restrictions on virtual currencies. In recent years, stablecoins have started to be viewed as financial infrastructure for cross-border settlement rather than speculative crypto products. Nevertheless, 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 aspect of Chinese economic policy, and a stablecoin backed by the offshore yuan is distinct from one backed by the onshore yuan. Allaire's predicted timeline depends on whether China views stablecoins as a workaround or a long-term commitment. With the global stablecoin market currently valued at nearly $315 billion, the introduction of a yuan stablecoin could have significant implications.