Bank of Korea Study: Dollar Stablecoins May Weaken Local Currencies

A study by the Bank of Korea suggests that demand for dollar-backed stablecoins can exert downward pressure on local currencies when global exchanges enable direct fiat-to-stablecoin trading. Researchers analyzed the impact of Binance introducing direct trading pairs between local currencies, such as the Brazilian real and Turkish lira, and dollar-pegged stablecoins like USDT and USDC. The findings indicate that stablecoin premiums decreased by 0.33 to 0.38 percentage points following the introduction of these pairs, while demand for the stablecoins strengt