USDC creator sees “massive opportunities” for a yuan-backed stablecoin
Jeremy Allaire, CEO and co-founder of Circle Internet Group (the issuer of the world’s second-largest stablecoin, USDC), has highlighted “massive opportunities” for creating a stablecoin backed by the Chinese yuan. In his view, digital money is becoming a key tool for integrating national currencies into the global trade and financial system, Reuters reports.
In an exclusive interview with Reuters in Hong Kong, Allaire emphasized that China has openly expressed its intention to expand the yuan’s role in the global financial system. In this context, stablecoins represent an ideal mechanism for “exporting” currency, making global cross-border payments faster and cheaper.
“There are massive opportunities for a yuan stablecoin,” Allaire said. “In a world of currency competition, you want your national currency to have the best possible characteristics. Today, that is becoming a technological race.”
According to the Circle CEO, China could launch a yuan-backed stablecoin within the next three to five years.
The creation of a yuan stablecoin would mark a radical shift in China’s strict policy toward digital assets. In 2021, Beijing fully banned cryptocurrency trading and mining within its territory, citing risks to financial stability. More recently, in November 2025, amid another global surge of interest in digital assets, the People’s Bank of China officially reaffirmed its firm stance against virtual currencies.
Allaire also noted that the recent escalation of the U.S.-Iran conflict triggered an additional surge in USDC transactions by “several billion dollars.” Heightened geopolitical risks are pushing investors and businesses worldwide to seek reliable and highly mobile “digital dollars” to preserve capital and conduct transactions outside the traditional banking system.
See also: "Bitcoin rises above $75K amid easing geopolitical risks"
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