10:28 pm - February 4, 2026
Half of the world’s currencies could be represented in the stablecoin market by 2026, according to Fiorenzo Manganiello, co-founder and managing partner of investment firm LIAN Group. This bold prediction comes as China reportedly considers permitting the use of yuan-backed stablecoins, a move that could reverse the country’s longstanding ban on cryptocurrency in payments.
Manganiello indicated that such a policy shift from China would demonstrate that stablecoins are becoming an essential element of the global payments infrastructure. The forecast highlights the potential for significant expansion beyond the current market dominated by US dollar-pegged digital assets.
China’s Potential Entry Could Transform the Stablecoin Market
The stablecoin market has historically been dominated by dollar-pegged assets like USDT and USDC. However, China’s potential decision to allow yuan-backed stablecoins represents a significant development that could reshape the competitive landscape.
According to Manganiello, China’s entry into the market could trigger a broader trend of de-dollarization. Other nations may follow suit by introducing stablecoins backed by their own currencies to enhance their positions in global payments systems.
A Watershed Moment for Digital Currency Diversification
The LIAN Group managing partner described the potential development as a watershed moment for the tokens. He emphasized that while some diversification has occurred, the market remains heavily dollarized, as evidenced by the popularity of USDT, USDC, USDe, and DAI.
“If China proceeds in allowing yuan-pegged stablecoins, it will catalyse what could be a mass diversification in the market – a real watershed moment,” Manganiello said. He noted that participation by the world’s second-largest economy could fundamentally alter the current dynamic.
Growing Institutional Interest Supports Stablecoin Expansion
Additionally, Manganiello pointed to increasing institutional acceptance in Western markets as another factor driving stablecoin adoption. Combined with the potential Chinese policy change, these developments could accelerate the integration of stablecoins into mainstream finance.
The investment executive argued that improved regulatory frameworks and growing institutional backing are making stablecoins indispensable in the global payments sector. As governments worldwide become more receptive to digital currencies, the market appears poised for rapid expansion and diversification.
Meanwhile, LIAN Group has reportedly deployed over $500 million in capital across various sectors, including blockchain and artificial intelligence. Manganiello also serves as a professor of blockchain technologies at Geneva Business School, lending academic credentials to his market analysis.
De-Dollarization and Currency Sovereignty
The prediction of increased currency representation in stablecoin markets aligns with broader geopolitical trends toward financial sovereignty. Countries seeking to reduce dependence on the US dollar in international transactions may view national stablecoins as strategic tools.
However, the timeline and extent of this diversification remain uncertain. The actual implementation of yuan-backed stablecoins by China has not been officially confirmed, and regulatory approaches vary significantly across jurisdictions.
In contrast to the current dollar-dominated landscape, a more diverse stablecoin ecosystem could offer greater options for cross-border payments and international commerce. This development could also introduce new competitive dynamics among nations seeking to establish their currencies as digital payment standards.
Whether China will formally authorize yuan-backed stablecoins and the timeline for such a decision remain unclear. Market observers will be watching for official announcements from Chinese authorities regarding cryptocurrency policy changes in the coming months.
