Circle’s CEO believes that for the international distribution of China’s fiat currency, yuan-backed stablecoins may be more effective than central bank digital currency.

Jeremy Allaire, in an interview with the South China Morning Post, said he had no illusions about mainland China opening up a market for cryptocurrencies. However, he hopes that the free economic zone in Hong Kong will be open to the development of Web3 technologies.

The head of Circle sees a positive trend in the change in the attitude of Chinese government officials towards the crypto industry. This is expressed in support of Hong Kong’s steps to attract representatives of the digital finance industry to the country. Aller suggested that through Hong Kong and the offshore yuan (CNH)-pegged stablecoin, the Chinese government could strengthen the influence of the national currency in the international financial market.

“Stablecoins are unique in that they can offer a simpler solution to the PRC government’s goal of internationalizing the yuan. If the authorities ultimately want the yuan to be used more freely in trade and commerce around the world, perhaps stablecoins are a more efficient way to go than the central bank’s digital currency, eCNY,” reasoned Jeremy Aller.

According to the Blockzeit publication, double standards in relation to the players of the cryptocurrency industry in the domestic and foreign markets allow China to achieve strategic success, which can lead to global technological and financial dominance of the PRC.