Circle CEO Jeremy Allaire has highlighted the significant potential of an offshore RMB stablecoin (CNHC) in a recent interview. Allaire noted that as the use of the Chinese yuan in global settlements increases, tokenizing the currency could substantially reduce cross-border transaction costs and enhance settlement efficiency. While USD stablecoins currently dominate the market, Allaire believes a compliant offshore RMB stablecoin could be an attractive alternative for regions and businesses seeking to lessen their reliance on the dollar system. However, regulatory challenges persist. In February 2026, the People's Bank of China and other major regulatory bodies issued a notice prohibiting the issuance of RMB-pegged stablecoins abroad without prior approval from regulatory authorities.