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 framework marks a shift from a speculative idea to something closer to political alignment. Reuters reported in August 2025 that Chinese authorities were studying a yuan-backed stablecoin to boost international adoption, a notable turn for a country that has banned crypto trading and mining since 2021.
Allaire has been making this point since at least 2023, when he argued that stablecoins could surpass central bank digital currencies as a vehicle for RMB internationalization. At the time, Beijing’s position seemed strongly opposed. Authorities arrested individuals linked to CNHC, an offshore yuan stablecoin, and later that year reiterated restrictions on virtual currencies.
In the years since, stablecoins have come to be 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. This means that foreigners and markets should be able to freely trade yuan without strict government restrictions on capital flows or limits on the amount of money moving in and out of the country.
Without such full convertibility, a yuan stablecoin would be impossible, according to experts.
However, at present, capital controls remain a pillar of Chinese economic policy, and an offshore yuan-backed (CNH) stablecoin is a very different instrument than an onshore yuan-backed (CNY) stablecoin – the former fits within existing controls, the latter does not.
Allaire’s timeline ultimately depends on whether China views stablecoins as a workaround or a commitment. Technology can change quickly. The political decision, as always, is the hardest part.
Currently, the global stablecoin market is worth nearly $315 billion, with dollar-pegged private tokens such as Tether. and USD Coin (USDC) making up the majority of the total value.
