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CryptoPotato1 min read
Circle CEO sees ‘tremendous opportunity’ for yuan stablecoin despite China curbs
TL;DR
Circle CEO Jeremy Allaire sees significant potential for a yuan-backed stablecoin despite China's restrictions on private renminbi-linked stablecoins. He suggests that such a stablecoin could facilitate global payments and may be launched within three to five years.
Key points
- Circle CEO sees opportunity for yuan-backed stablecoin
- China has moved against private renminbi-linked stablecoins
- Yuan-backed stablecoin could facilitate global payments
- Launch expected in three to five years
- China's regulations on stablecoins are tightening
Mentioned in this story
CircleJeremy AllairePeople’s Bank of China
Circle CEO Jeremy Allaire says there is “tremendous opportunity” for a yuan-backed stablecoin, despite Beijing’s formal moves against most private renminbi-linked stablecoins and commitment to its own digital yuan.
Speaking to Reuters in Hong Kong on Thursday, Allaire framed stablecoins as a way for China to “export” its currency by making global payments easier, as digital money becomes more tightly woven into trade and finance, and said the country could roll out a yuan-backed stablecoin within three to five years.
Geopolitical rivalry over money is increasingly being waged in code as much as in central bank policy, and Allaire’s comments sharpen a deeper question: can governments that clamp down on private digital currencies afford to shun them if they want to compete globally?
China’s crackdown contrasts with growing demand for stablecoins as cross-border payment tools, raising questions about how the yuan will evolve in a tokenized financial system.
In February, the People’s Bank of China and seven other agencies said unauthorized offshore issuance of yuan-pegged stablecoins would be treated as illegal financial activity and said tokenization of domestic real-world assets would face stricter vetting.
Officials framed the move as necessary to protect financial stability, curb capital flight and safeguard monetary sovereignty as Beijing pushes its central bank digital currency, the e-CNY. The decision slams the door on most offshore RMB stablecoins just months after reports that China was studying yuan-backed tokens as a way to boost global usage of its currency.
Related: China’s interest-bearing digital yuan piles pressure on US stablecoin rules
Digital dollars still dominate stablecoins
Allaire’s remarks come as stablecoins are pulled deeper into geopolitics. Circle’s US dollar-backed USDC grew 72% year-on-year in circulation to $75.3 billion by the end of 2025. Allaire told Reuters that “several billion dollars” in additional as users sought portable digital dollars in a crisis.
Q&A
What did Circle CEO Jeremy Allaire say about yuan-backed stablecoins?
Jeremy Allaire stated that there is a 'tremendous opportunity' for a yuan-backed stablecoin, which could help China export its currency and simplify global payments.
What are China's current regulations on private yuan stablecoins?
China has declared unauthorized offshore issuance of yuan-pegged stablecoins as illegal and is implementing stricter regulations on the tokenization of domestic assets.
When could a yuan-backed stablecoin be launched according to Circle's CEO?
Allaire mentioned that a yuan-backed stablecoin could potentially be rolled out within three to five years.
