Circle CEO Says Yuan Stablecoin Offers China Major Opportunity for Global Expansion

Gate News message, April 16 — Circle CEO Jeremy Allaire recently argued that China has a significant opportunity to expand the global use of the yuan through a yuan-backed stablecoin, with such a product potentially becoming a reality within three to five years. Speaking in Hong Kong, Allaire suggested that stablecoins could help China facilitate faster and easier international payments while “exporting” its currency globally.

China has taken a restrictive approach to privately issued yuan stablecoins. In February, the People’s Bank of China and seven other regulatory agencies declared unauthorized offshore issuance of yuan-pegged stablecoins to be illegal financial activity. Beijing continues to prioritize its state-controlled digital currency, the e-CNY, and maintains its 2021 ban on crypto trading and mining. The central bank intensified enforcement against stablecoins in late 2025, citing the need to protect financial stability, prevent capital flight, and defend monetary sovereignty.

Meanwhile, US dollar-backed stablecoins dominate the global market, representing 99.8% of all fiat-backed stablecoins in 2025. Circle’s USDC grew 72% year-on-year to $75.3 billion in circulation by the end of 2025. Allaire highlighted that billions of dollars in additional USDC transactions occurred during the US-Iran conflict as users sought portable digital dollars during periods of uncertainty.