Beijing should consider allowing for Chinese Yuan (CNY)-backed stablecoins if it wants to internationalize its currency, Circle CEO Jeremy Allaire said. He sees stablecoins as a superior option to CBDCs. Authorities in China would be hesitant to allow such a plan, as capital controls and a ban on the free convertibility of the yuan are pillars of its economic policy.Other stakeholders have noted that China would rather keep these rules in place rather than allow for free convertibility and an actual challenge to dollar dominance. In many ways, Circle and Tether have been a net beneficiary of all of this. Research from Chainalysis shows that stablecoins are an effective tool for remittances.
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