Circle CEO Says China Could Launch Yuan Stablecoin Within 3 to 5 Years

Stablecoins maintain their value through fiat currency reserves and are increasingly becoming infrastructure for cross-border payments. A yuan-denominated version could help China advance the currency’s internationalization and challenge the dominance of dollar-backed stablecoins. Circle-issued USDC had $75.3 billion in circulation at the end of 2025, up 72% from a year earlier, underscoring the scale and strategic importance of the currency competition.

In a Reuters interview in Hong Kong on April 16, 2026, Circle co-founder and CEO Jeremy Allaire predicted that China could launch a yuan stablecoin within the next 3 to 5 years and said Hong Kong could become a cross-border payments hub. China has banned cryptocurrency trading and mining since 2021, however, and any rollout would still depend on whether Beijing eases capital controls and restrictions on yuan convertibility.