In Hong Kong, Circle CEO Jeremy Allaire expressed to Reuters that a yuan-backed stablecoin presents a ‘tremendous opportunity,’ estimating its potential release within the next three to five years as digital currencies increasingly integrate into global trade and finance. This shift indicates movement from speculation toward policy alignment, according to Reuters’ August 2025 report on Chinese officials exploring this concept to enhance international adoption, despite previously banning crypto trading and mining since 2021.
Allaire has advocated for stablecoins since at least 2023, suggesting they could surpass central bank digital currencies in promoting RMB internationalization. This perspective emerged when Beijing appeared firmly opposed, as evidenced by arrests related to the offshore yuan stablecoin CNHC and reinforced restrictions on virtual currencies that year.
Over time, stablecoins have transitioned from being viewed as speculative crypto assets to financial infrastructure essential for cross-border settlements.
For China to introduce a yuan stablecoin, it would necessitate making the RMB fully convertible. This conversion means allowing free exchange of yuan by foreigners and markets without stringent capital flow restrictions or limitations on money entering or leaving the country. Experts agree that absent full convertibility, launching a yuan stablecoin is unfeasible.
Currently, capital controls remain central to Chinese economic policy. A CNH-backed stablecoin (offshore yuan) operates differently from one backed by CNY (onshore yuan), with the former fitting existing controls and the latter not.
Allaire’s timeline depends on China viewing stablecoins as either a workaround or a commitment. While technology can advance rapidly, making the policy decision is invariably more challenging.
Today, the global stablecoin market is valued at nearly $315 billion, dominated by privately issued dollar-pegged tokens like Tether (USDT) and USD Coin (USDC).