He predicts a yuan stablecoin could emerge within the next three to five years.
Circle CEO Jeremy Allaire stated that a stablecoin pegged to the Chinese yuan represents a “colossal opportunity” to enhance the national currency’s global competitiveness.
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According to him, such a digital asset could significantly simplify international payments and make the yuan more attractive for use outside China.
“If currency competition is underway, the currency with the best characteristics wins. This is now a technology race,” the Circle CEO told Reuters.
China’s Position
Chinese authorities remain cautious. In February 2026, the People’s Bank of China and other regulators banned the issuance of yuan-pegged stablecoins outside the country without prior approval. Officials emphasized that such tokens could threaten financial stability and monetary sovereignty.
Read also: U.S. Banks Push Back Against White House Findings on Yield-Bearing Stablecoins
Earlier, in July 2025, major technology companies Ant Group and JD called on regulators to legalize yuan stablecoins in addition to existing Hong Kong dollar-pegged tokens. However, priority currently remains with the state-backed digital currency, e-CNY.
Market Context
Amid these statements, the global stablecoin market continues to grow. According to data from late 2025, total stablecoin volume exceeded $315 billion, with the vast majority attributed to US dollar-pegged tokens (USDT▼$0.9980 and USDC▲$1.0000).
Allaire has consistently argued for several years that stablecoins could be a more effective tool for yuan internationalization than a central bank digital currency.
Related: Chainalysis—Stablecoin Transaction Volume Could Reach $1.5 Quadrillion by 2035
