Circle CEO Jeremy Allaire told Reuters in Hong Kong that there is a “tremendous opportunity” for a yuan-backed stablecoin, and predicted China could launch one within three to five years as digital currencies become more integrated into global trade and finance.
The framework marks a shift from a speculative idea 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 notable turn for a country that has banned cryptocurrency trading and mining since 2021.
Allaire has been making this argument since at least 2023, when he argued that stablecoins could overtake central bank digital currencies as a vehicle for RMB internationalization. At the time, Beijing’s stance seemed firmly opposed. Authorities arrested people linked to CNHC, an offshore yuan stablecoin, and reiterated restrictions on virtual currencies that same year.
In the years since then, stablecoins are now treated less as speculative crypto products and more as financial infrastructure for cross-border settlements.
However, for China to launch a yuan stablecoin, Beijing would need to make the RMB fully convertible. It means foreigners and markets would need to be able to freely exchange yuan in and out of the country without strict government restrictions on capital flows or limits on the amount of money entering and leaving the country.
Without such full convertibility, a stable yuan currency would be impossible, according to experts.
However, as of now, capital controls remain a pillar of Chinese economic policy, and a stablecoin backed by the offshore yuan (CNH) is a significantly different instrument than one backed by the domestic yuan (CNY): the former fits within existing controls, the latter does not.
Allaire’s timeline ultimately depends on whether China views stablecoins as an alternative solution or a compromise. Technology can advance quickly. The political decision, as always, is the most difficult part.
As of today, the global stablecoin market is worth almost $315 billion, with privately issued dollar-pegged tokens such as Tether. and USD Coin (USDC) make up the majority of the total value.
