%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment China is likely to issue a stablecoin backed by the Yuan currency within the next five years, according to the CEO of Circle Internet Group (NYSE: $CRCL ). Jeremy Allaire said in a recent interview that there is a "tremendous opportunity" for a Yuan-backed stablecoin, predicting China could roll one out within three to five years. The CEO said that officials in Beijing are likely to feel growing pressure to issue a stablecoin as digital currencies become more integrated into global finance. China's government has acknowledged that they are exploring a stablecoin but have yet to commit to the cryptocurrency. Still, even acknowledging a stablecoin is a notable turn for China, which has banned cryptocurrency trading and mining since 2021. Allaire says that stablecoins could outperform central bank digital currencies as a vehicle for currency internationalization. He also notes that stablecoins are now being treated less as a speculative cryptocurrency and more as financial infrastructure for cross-border settlements. For China to successfully launch a Yuan stablecoin, Beijing would need to allow foreigners and markets to freely exchange the Chinese currency without tight government controls. Without such convertibility, a yuan stablecoin would be impossible, says Allaire, whose company Circle issues the USD stablecoin (CRYPTO: $USDC ) that's pegged to the U.S. dollar. Today, the global stablecoin market is worth about $315 billion U.S., with privately issued dollar-pegged tokens such as USDC making up the bulk of the total value. CRCL stock has risen 23% this year to trade at $102.36 U.S. per share.