Summary
- Circle said yuan-based stablecoins represent a tremendous opportunity.
- Chief Executive Officer Jeremy Allaire said China could launch a yuan-based stablecoin within the next three to five years, underscoring the role of stablecoins in global payments and currency export.
- Allaire said demand for portable digital dollars has risen as geopolitical risks intensified after the Iran war, and USDC trading volume has increased by billions of dollars.
Forecast Trend Report by Period
Circle, the issuer of the USDC dollar-pegged stablecoin, says there is a "tremendous opportunity" for a yuan-based stablecoin.
Chief Executive Officer Jeremy Allaire told Reuters on June 16 that a yuan stablecoin presents a "tremendous opportunity" and that China could launch one within the next three to five years.
Allaire tied that opportunity to the rivalry between the dollar and the yuan. China wants to expand the yuan's role in the global financial system, he said, and stablecoins have emerged as one way to export a currency by making global payments easier.
Reuters said such a move would mark a major shift in China's approach to digital assets. China banned cryptocurrency trading and mining in 2021 over concerns about the stability of its financial system.
Allaire also pointed to rising demand for stablecoins stemming from the Iran war. Geopolitical risks have increased demand for portable digital dollars since the conflict began, and USDC trading volume has risen by billions of dollars, he said.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
