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Circle CEO Predicts China Could Launch Yuan Stablecoin Within 3–5 Years

Analysts cite China’s capital controls as the key obstacle to a yuan-pegged token.

Overview

  • Jeremy Allaire, speaking in Hong Kong Thursday, said China could debut a yuan stablecoin in three to five years and called the idea a tremendous opportunity.
  • Experts told CoinDesk that a true onshore yuan coin would require full convertibility, which China’s capital controls do not allow today.
  • A token backed by offshore CNH would differ in practice from one backed by onshore CNY, because the offshore market fits existing controls and the onshore market does not.
  • Reuters reported in August 2025 that officials explored a yuan stablecoin to broaden the currency’s global use, a notable turn after China’s 2021 ban on crypto trading and mining.
  • Stablecoin policy in the U.S. is also in flux as the draft CLARITY Act targets interest-like rewards, and Allaire said any marketing limits would likely hit distributors more than issuers.