In the words of Jeremy Allaire, “If eventually the Chinese government wants to see the RMB used more freely in trade and commerce around the world, it may be that stablecoins are the path to do that more than the central bank digital currency.”
In a recent interview, Circle CEO Jeremy Allaire claimed that stablecoins pegged to the Chinese Yuan are better at facilitating cross-country trades than Central Bank Digital Currencies (CBDCs).
Allaire claimed that barring Hong Kong, a majority of the key players in the financial world have embraced digital currencies. According to him, Yuan-backed stablecoins can aid the Chinese government's plans to internationalize their national currency.
The CEO of Circle referred to CNHC's Yuan-pegged stablecoin as an example of how China can globalize the Yuan. It is worth noting that Circle was one of the primary backers of this token alongside KuCoin. In fact, the two firms helped the project raise $10M in a funding round in March 2023.
However, reports of CNHC members being detained by the police in Shanghai emerged in May. Moreover, the authorities have yet to reveal the reason behind the detention.
Besides China, the issuer of USD Coin (USDC) seeks to expand its presence in the Japanese market. Citing that the nation could emerge as a hub for Web3 technology, Allaire acknowledged that Circle is interested in partnering with Japanese firms.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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