stable coins
By Sakamoto Nashi
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Dollar Dominance Holds Firm. The numbers tell the story. Over 90% of fiat-backed stablecoins are in U.S. dollars.
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Regulatory Walls Everywhere. China's regulatory stance creates big hurdles. The government wants control over digital currency,…
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Circle's Jeremy Allaire thinks a yuan-backed stablecoin could show up in three to five years.
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China banned crypto trading years ago and doesn't seem interested in changing course. The government's focus is the e-CNY, its central bank digital currency, which gives…
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The numbers tell the story. Over 90% of fiat-backed stablecoins are in U.S. dollars. USDT and USDC control a market worth around $300 billion.
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A yuan stablecoin could change things for cross-border settlements, especially in Asia. It would give traders and institutions a digital way to hold renminbi without going…
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Circle has reasons to talk up a multi-currency stablecoin world. As the issuer of USDC, the company benefits if the market expands beyond just dollar tokens.
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Offshore financial centers will probably play a big role if yuan stablecoins ever take off. Hong Kong, Singapore, maybe Dubai—places where capital controls are lighter and…
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The existing yuan stablecoins prove how hard this is. CNHC and AxCNH serve small markets, mostly for specific trade finance use cases.
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Circle's interest in multi-currency stablecoins makes sense from a business angle. The company wants to be the infrastructure layer, not just a dollar token issuer.
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See also: Circle Gets Hit With Lawsuit Over $280M Drift Hack as Experts Debate Freeze Powers
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Cross-border payments could be the killer app for a yuan stablecoin. Asian businesses that trade with China might prefer settling in renminbi to avoid currency conversion costs.
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The practical challenges are huge. China's financial system is tightly controlled, and the government isn't about to let private companies issue digital yuan that bypasses those…
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Market adoption is another problem. Traders and institutions are used to dollar stablecoins. They're liquid, widely accepted, and easy to use.
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Allaire's three-to-five-year timeline is optimistic. It assumes China's stance softens or that offshore markets grow big enough to support a yuan stablecoin ecosystem.
The Currency Analytics
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