Circle Eyes China To Release Yuan Stablecoin Soon, CRCL Stock Up

USDC issuer Circle Internet Group Inc. (NYSE:CRCL) is expecting China to launch a Chinese Yuan-backed stablecoin soon. Circle CEO Jeremy Allaire recently noted that sees massive potential for a Yuan stablecoin as competition between currencies continue to surge.

Circle CEO’s Remarks On Yuan Stablecoin

Allaire stated that with the growing use of digital currencies for global trade, he eyes “tremendous opportunity” for China to release a Yuan-backed stablecoin. He added that the country looks to expand Yuan’s role in the global financial market and stablecoins are long known for their cross-border payment capabilities. Hence, a Yuan stablecoin could help China achieve this goal.

In a Hong Kong interview, Allaire said, “There’s a tremendous opportunity for a yuan stablecoin.” He added, “If there’s currency competition, you want your currency to have the best features possible. This is becoming a technological competition.”

The Circle CEO noted that China could release a Yuan stablecoin in the coming three to five years, per a Reuters report. Since China has remained hostile toward cryptocurrencies for years, such a move may open doors for the crypto industry’s expansion in the country.

China’s Stance On Yuan Stablecoin & Crypto

In August, Chinese officials had indicated interest in developing a Yuan-backed stablecoin. They noted that this initiative aimed at enhancing the global adoption of their national currency. However, the country is still adamant on its crypto ban initiated in 2021.

At the time, it banned all crypto trading and mining activities in the country. To justify the move, they highlighted concerns regarding the stability of their financial system. In addition, China’s central bank doubled down on this stance in November 2025.

Last year, the People’s Bank of China announced a crackdown on illicit crypto activities that involve stablecoins. Thus, as Circle CEO predicted, the country could launch a Yuan stablecoin to tackle such activities and regulate the market.

Following Allaire’s statement today, the CRCL stock gained in the pre-market trading session. At press time, the Circle stock was up 1.09% to 106.67 on Thursday, April 16.