Circle CEO Jeremy Allaire told Reuters in Hong Kong that there is a “tremendous opportunity” for a yuan-backed stablecoin, predicting that China could roll one out within three to five years as digital currencies become more integrated into global trade and finance.
The framing marks a shift from speculative ideation to something closer to policy alignment. Reuters reported in August 2025 that Chinese officials were exploring a yuan-backed stablecoin to boost international adoption, a remarkable turnaround for a country that has banned crypto trading and mining since 2021.
Allaire has been making this case since at least 2023, arguing that stablecoins could surpass central bank digital currencies as a means of internationalizing the RMB. At the time, Beijing’s position looked starkly opposite. Authorities arrested people associated with CNHC, an offshore yuan stablecoin, and later that year reiterated restrictions on virtual currencies.
In the years since, stablecoins have now been treated less as speculative crypto products and more as financial infrastructure for cross-border settlement.
But for China to launch a stable yuan currency, Beijing must make the RMB fully convertible. This means that foreigners and markets must be able to freely exchange yuan in and out without tight government restrictions on capital flows or limits on how much money flows in and out of the country.
Without such full convertibility, a yuan stablecoin would be impossible, according to experts.
But as of now, capital controls remain a pillar of Chinese economic policy, and a stable currency backed by the offshore yuan (CNH) is a meaningfully different instrument than one backed by the onshore yuan (CNY)—the former fits into existing controls, the latter does not.
Allaire’s timeline ultimately depends on whether China sees stablecoins as a solution or a liability. Technology can move quickly. The political decision is, as always, the hardest part.
Today, the global stablecoin market is worth nearly $315 billion with privately issued dollar-pegged tokens such as Tether and USD Coin (USDC), which makes up the bulk of the total value.
