Circle CEO says China could launch yuan stablecoin within 3 to 5 years as currency race heats up
The pitch is global scale for the yuan, but capital controls, offshore limits and convertibility gaps still stand in the way
What to know:
- Circle CEO Jeremy Allaire said he sees a “tremendous opportunity” for a yuan-backed stablecoin and predicted China could launch one within three to five years.
- The idea has shifted from speculation to potential policy, as Chinese officials have reportedly explored a yuan stablecoin despite the country’s ban on crypto trading and mining since 2021.
- Analysts say a true yuan stablecoin would require Beijing to make the currency fully convertible, meaning China’s decision will hinge more on capital-control policy than on technology.
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.
