Circle's chief executive sees a major opening for a yuan-backed stablecoin, even as Beijing resists private issuance and pushes its own digital currency.
Allaire's Stablecoin Forecast
Jeremy Allaire, head of Circle Internet Group, told Reuters in Hong Kong on Thursday that China could launch a yuan stablecoin within three to five years.
He described the shift as part of a broader contest over how national currencies move across borders.
"If there's currency competition, you want your currency to have the best features possible," Allaire said. He added, "This is becoming a technological competition," according to Reuters.
Allaire framed stablecoins as vehicles for exporting national currencies, arguing China has long pursued a larger role for the yuan in global finance and that offshore trade corridors already use renminbi for settlement.
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Beijing's Digital Yuan Push
Beijing has moved the other way. In February 2026, the People's Bank of China and seven agencies banned unauthorized issuance of yuan-linked stablecoins abroad, warning such tokens could undermine monetary sovereignty.
The central bank has instead backed its state-run e-CNY, letting commercial banks pay interest on digital yuan wallets starting January 2026.
The stakes are sizable. Global stablecoin transaction value hit $33 trillion in 2025, up 72% year-over-year, while Circle's USDC (USDC) reached $78.6 billion in circulation by year-end, also up 72%.
China first piloted the digital yuan in 2020 across cities including Shenzhen and Suzhou, later expanding tests to cross-border settlement through the mBridge project before scaling commercial bank integration in 2025.
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