China is likely to issue a stablecoin backed by the Yuan currency within the next five years, according to the CEO of Circle Internet Group (NYSE: $CRCL).
Jeremy Allaire said in a recent interview that there is a "tremendous opportunity" for a Yuan-backed stablecoin, predicting China could roll one out within three to five years.
The CEO said that officials in Beijing are likely to feel growing pressure to issue a stablecoin as digital currencies become more integrated into global finance.
China's government has acknowledged that they are exploring a stablecoin but have yet to commit to the cryptocurrency.
Still, even acknowledging a stablecoin is a notable turn for China, which has banned cryptocurrency trading and mining since 2021.
Allaire says that stablecoins could outperform central bank digital currencies as a vehicle for currency internationalization.
He also notes that stablecoins are now being treated less as a speculative cryptocurrency and more as financial infrastructure for cross-border settlements.
For China to successfully launch a Yuan stablecoin, Beijing would need to allow foreigners and markets to freely exchange the Chinese currency without tight government controls.
Without such convertibility, a yuan stablecoin would be impossible, says Allaire, whose company Circle issues the USD stablecoin (CRYPTO: $USDC) that's pegged to the U.S. dollar.
Today, the global stablecoin market is worth about $315 billion U.S., with privately issued dollar-pegged tokens such as USDC making up the bulk of the total value.
CRCL stock has risen 23% this year to trade at $102.36 U.S. per share.
COMTEX_477374506/2797/2026-04-16T14:20:56