Circle CEO: China could launch yuan stablecoin in 3-5 years
Circle CEO Jeremy Allaire said in Hong Kong China could launch a yuan-backed stablecoin within three to five years.
In Hong Kong, Circle CEO Jeremy Allaire said China could roll out a yuan-backed stablecoin within three to five years and called it “a tremendous opportunity” as currency features shift to blockchain infrastructure.
Allaire argued stablecoins have become a tool for countries to extend their currencies into global trade and payments. He suggested a private or regulated yuan-pegged token could offer more flexibility offshore than China’s state-controlled e-CNY and placed a three- to five-year timeline on a possible rollout.
Circle issues USDC, the world’s second-largest stablecoin. Circle reported USDC circulation grew 72% year-on-year to $75.3 billion by the end of 2025. Market trackers put USDC’s market cap at about $78.6 billion on April 16. Circle recorded “several billion dollars” in USDC transaction growth after the outbreak of the U.S.-Iran war, which Allaire linked to demand for portable digital dollars during geopolitical shocks.
Allaire identified Hong Kong as a likely launchpad for a yuan stablecoin, citing the city’s role as a cross-border payments hub and its issuance of first stablecoin licenses to institutions, including HSBC. Circle is exploring ways to integrate Hong Kong dollar stablecoins into global platforms.
China banned cryptocurrency trading and mining in 2021. The People’s Bank of China reiterated those restrictions in November 2025 while advancing an e-CNY digital yuan pilot program. In February 2026, the central bank moved to ban unregulated offshore issuance of yuan-pegged tokens, saying such instruments “perform some functions of legal tender.”
Issuance of yuan-pegged stablecoins would raise regulatory, technical and geopolitical questions, including who controls issuance and how tokens would be used offshore. Whether China chooses a state-led approach, allows regulated private issuance or adopts a mix of both will shape how the yuan is used in cross-border payments.
Circle shares (NYSE: CRCL) rose about 1% in pre-market trading after the interview.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy and Disclaimers.
Articles by this author
