Gate News message, April 17 — Circle CEO Jeremy Allaire recently predicted that China could launch a yuan-backed stablecoin within three to five years as digital currencies become more embedded in global trade and finance. The comments follow Chinese officials’ exploration of the idea, despite the country’s 2021 ban on cryptocurrency trading and mining.
The global stablecoin market is worth approximately $315 billion, led by dollar-pegged tokens including Tether’s USDT and Circle’s USDC. Experts noted that a yuan stablecoin would require Beijing to make the renminbi fully convertible, though an offshore yuan token could better align with existing capital controls than one backed by the onshore currency.
China has pursued a decades-long strategy to widen renminbi use internationally. In 2023, the yuan’s share of global payments through SWIFT, the widely used international bank messaging network, rose from 2.1% to 4.3%. Beijing has also built infrastructure such as the Cross-Border Interbank Payment System (CIPS) for processing international payments and conducted cross-boundary digital yuan (e-CNY) pilots, including one in Hong Kong connecting e-CNY with the city’s Faster Payment System.
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