Circle CEO Jeremy Allaire told Reuters in Hong Kong that there is a “tremendous opportunity” for a yuan-backed stablecoin, predicting 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 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 crypto trading and mining since 2021.
Allaire has been making this case since at least 2023, when he argued stablecoins could outperform central bank digital currencies as a vehicle for RMB internationalization. At the time, Beijing’s stance looked firmly 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 are now being treated less as speculative crypto products and more as financial infrastructure for cross-border settlement.
However, for China to launch a yuan stablecoin, Beijing would need to make the RMB fully convertible. It means that foreigners and markets would need to be able to freely exchange yuan in and out without tight government restrictions on capital flows or limits on how much money flows into and out of the country.
Without such full convertibility, a yuan stablecoin 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 meaningfully different instrument than one backed by the onshore yuan (CNY) — the former fits within existing controls, the latter doesn’t.
Allaire’s timeline ultimately hinges on whether China sees stablecoins as a workaround or a commitment. The technology can move quickly. The policy decision, as always, is the harder part.
As of today, the global stablecoin market is worth nearly $315 billion, with privately issued dollar-pegged tokens such as Tether and USD Coin (USDC) making up the bulk of the total value.