Circle CEO Jeremy Allaire pointed out that there is a "huge opportunity" for the launch of a RMB-backed stablecoin, emphasizing that the impact of digital currencies on global trade payment systems is continuously expanding. In an interview in Hong Kong, Allaire predicted that China might launch this stablecoin within three to five years, as the competitive landscape of currencies becomes increasingly evident.
China's Ambitions in Currency and Trade
Circle is known for its US dollar stablecoin USDC and operates at the intersection of payments, blockchain infrastructure, and global digital currencies. Since the launch of USDC, Circle has become one of the major players in the stablecoin space, with a projected circulation of $78.6 billion by the end of 2025.
Allaire's outlook comes as China continues its efforts to expand the influence of the RMB in global finance. By launching a stablecoin pegged to the RMB, Beijing could enhance the currency's role in international trade, especially in regions where RMB settlement has already been established.
A RMB-pegged stablecoin would give China greater influence in cross-border payments, leveraging the growing demand for programmable digital currencies. For Chinese policymakers, this move aligns with the overall strategy to expand the RMB's influence and compete with other countries' digital currencies.
Different Strategies: e-CNY vs. Private Stablecoins
Despite ongoing discussions around stablecoins, Chinese authorities have so far taken a cautious approach. In February 2026, the People's Bank of China and several government agencies implemented a ban on unauthorized issuance of RMB stablecoins, as officials are concerned that private stablecoins could threaten China's monetary sovereignty.
In contrast, the government places greater emphasis on its state-developed digital currency, e-CNY. Since January 2026, commercial banks in China have been able to offer interest payments on digital RMB wallets, supporting the nationwide adoption of e-CNY.
Allaire emphasized that stablecoins now represent a domain of competition between currencies and technology: "If there is currency competition, you want your currency to have the optimal characteristics. This is becoming a technological competition."
The rise in trading volume in the stablecoin sector showcases the rapid pace of adoption. Global stablecoin trading reached $33 trillion in 2025, reflecting a 72% annual growth rate due to increasing usage in settlements and global commerce.
Whether Beijing will ultimately turn to support private RMB stablecoins or continue to prioritize the development of e-CNY may depend on how quickly competitive stablecoin networks capture cross-border payment flows across Asia. The speed of the competitive ecosystem's expansion will influence how China adjusts its digital currency policies.