Circle Internet Group (NYSE:CRCL) CEO Jeremy Allaire said China could launch a yuan-backed stablecoin within three to five years, calling it a “tremendous opportunity” as digital money integrates into global trade.

The Yuan Play

China wants to expand the yuan’s role in the global financial system, and stablecoins have emerged as a way to export a currency by making it easier for global payments, Allaire told Reuters.

“There’s a tremendous opportunity for a yuan stablecoin,” Allaire said in an interview in Hong Kong. 

“If there’s currency competition, you want your currency to have the best features possible. This is becoming a technological competition,” he added.

Reuters reported last August that China was considering a yuan-backed stablecoin to boost adoption of its currency globally. 

Such a move would mark a major shift in China’s approach toward digital assets after the country banned cryptocurrency trading and mining in 2021.

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Circle …

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