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Jeremy Allier, CEO of Circle Internet Group, said he sees a “tremendous opportunity” for a yuan-backed stablecoin as digital currencies reshape the global business payment system.
Allaire made the comments in an interview with Reuters in Hong Kong on Thursday, expecting China to introduce a stable yuan in three to five years.
Stablecoins are turning into a currency arms race
These comments indicate Circle’s view that stablecoins have become vehicles for the export of national currencies.
China has long sought to expand the role of the yuan in global finance, and a stablecoin may accelerate the adoption of the yuan in trade lanes where a renminbi-denominated settlement already exists.
“If there’s competition in a coin, you want your coin to have the best functionality possible,” Allaire said. “This has become a technological competition,” As you said Reuters, citing Alier.
However, Beijing has gone as far as the opposite direction. In February 2026, the People’s Bank of China (PBOC) and seven government agencies banned unauthorized issuance. For stablecoins linked to the yuan out of. Authorities have argued that such tokens could threaten monetary sovereignty.
Instead, the Reserve Bank of China has promoted a state-backed digital yuan system, or e-CNY, that allows commercial banks to pay interest on digital yuan portfolios starting in January 2026.
The value of global stablecoin transactions will reach $33 trillion in 2025, up 72% year-on-year. I slept US Dollar Currency (USDC) Circle’s business volume will reach $78.6 billion by the end of 2025, up 72%.
Whether Beijing moves toward its own stablecoins or more e-CNY may depend on how quickly rival stablecoin ecosystems take control of cross-border payment flows across Asia.
