Jeremy Allaire, CEO and co-founder of Circle Internet Group (issuer of the world's second-largest stablecoin, USDC),
spoke of "tremendous opportunities" for the creation of a stablecoin backed by the Chinese yuan. He believes digital money is becoming a key tool for integrating national currencies into global trade and finance, Reuters reports.
In an exclusive interview with Reuters in Hong Kong, Allaire emphasized that China has openly declared its intention to expand the yuan's role in the global financial system. In this context, stablecoins are becoming an ideal mechanism for "exporting" the currency, making global cross-border payments faster and cheaper.
"There's tremendous opportunity for a yuan stablecoin," Allaire asserted. "In a competitive currency environment, you want your national currency to have the best possible characteristics. Today, it's becoming a technology race."
According to Circle's CEO, China could launch a yuan-backed stablecoin in the next three to five years.
The creation of a yuan-backed stablecoin would be a radical shift in China's strict policy toward digital assets. In 2021, Beijing completely banned cryptocurrency trading and mining within its borders, citing a threat to the stability of the financial system. More recently, in November 2025, amid yet another global frenzy around digital assets, the People's Bank of China officially reaffirmed its unwavering stance on virtual currencies.
Allaire noted that the recent escalation of the US-Iran war triggered an additional surge in USDC transactions of "several billion dollars." Heightened geopolitical risks are driving investors and businesses around the world to seek reliable and highly mobile "digital dollars" for capital preservation and settlements, bypassing the traditional banking system.