China May Introduce 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 three to five years as digital currencies become increasingly integral to international trade and finance. This prediction marks a shift from mere speculation to a more policy-aligned stance. In August 2025, Chinese officials were reportedly exploring the possibility of introducing a yuan-backed stablecoin to enhance its global adoption. Notably, this comes after China had banned cryptocurrency trading and mining in 2021. Allaire has been advocating for stablecoins as a means to facilitate RMB internationalization since at least 2023, arguing that they could outperform central bank digital currencies. However, for China to successfully launch a yuan stablecoin, it would need to achieve full convertibility of the RMB, allowing for unrestricted exchange of yuan by foreigners and markets. Currently, capital controls are a cornerstone of China's economic policy, making the introduction of a stablecoin backed by the onshore yuan (CNY) challenging. The timeline for this development hinges on whether China views stablecoins as a viable workaround or a long-term commitment. The global stablecoin market, valued at nearly $315 billion, is predominantly comprised of privately issued, dollar-pegged tokens such as Tether USDT and USD Coin (USDC).