A Bank of Korea study found that demand for dollar-pegged stablecoins may weigh on national currencies once global exchanges allow investors to buy them directly with fiat currencies.
The report said local stablecoin premiums fell by about 0.33 to 0.38 percentage points after Binance launched fiat-stablecoin trading pairs. It also found that stronger stablecoin buying pressure was associated with depreciation in currencies included in Binance trading pairs.
South Korea showed no clear exchange-rate reaction because Binance does not offer a direct won-stablecoin pair, with buying pressure instead lifting local stablecoin premiums. In a separate weekly-data test, a one-standard-deviation increase in Bitcoin Google searches was linked to a 0.118% depreciation in the Brazilian real and a 0.109 percentage-point rise in Brazil’s stablecoin premium.
Bank of Korea Study Says Dollar Stablecoin Demand May Pressure Local Currencies
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