China May Introduce Yuan-Backed Stablecoin Within Five 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 to Reuters in Hong Kong, highlighting a shift from speculative ideas to potential policy alignment. This comes after Chinese officials explored the concept of a yuan-backed stablecoin in August 2025 to boost international adoption, marking a notable shift for a country that banned crypto trading and mining in 2021. Allaire has been advocating for stablecoins as a means to internationalize the RMB since at least 2023, arguing 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. Currently, capital controls are a cornerstone of Chinese economic policy, making a stablecoin backed by the onshore yuan (CNY) challenging. The timeline for such a launch hinges on whether China views stablecoins as a viable workaround or a long-term commitment. As of now, the global stablecoin market is valued at nearly $315 billion, with dollar-pegged tokens like Tether USDT and USD Coin comprising the majority of the total value.