China May Introduce a Yuan-Backed Stablecoin Within 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 3 to 5 years as digital currencies become increasingly integrated into global trade and finance. Allaire made these remarks to Reuters in Hong Kong, marking a shift from a speculative idea to a more policy-aligned concept. This comes after Chinese officials were reported to be exploring a yuan-backed stablecoin in August 2025 to increase international adoption, a notable development for a country that has banned crypto 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, for China to launch 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, making a stablecoin backed by the offshore yuan (CNH) distinct from one backed by the onshore yuan (CNY). The global stablecoin market is currently worth nearly $315 billion, with privately issued dollar-pegged tokens dominating the total value.