Dollar-backed stablecoins can push local currencies lower, Bank of Korea study finds

Dollar stablecoins can weaken local currencies, BOK finds

Bank of Korea researchers found direct fiat-stablecoin trading can transmit crypto demand into FX markets and pressure local currencies.

Dollar-backed stablecoins can push local currencies lower, Bank of Korea study finds

Stablecoin Demand Can Weaken Local Currencies, BOK Study Finds

Summary: Direct fiat-to-stablecoin markets strengthen the connection between crypto demand and FX rates. Binance listings reduced local stablecoin premiums by […]

Bank of Korea study links stablecoin demand to weaker fiat

A Bank of Korea study links stablecoin demand to weaker local currencies. What it means for crypto liquidity, BTC, and the macro bear.

Dollar Stablecoins Could Put Pressure on Local Currencies, Korea Finds

Dollar-backed stablecoins could pressure local currencies when exchanges allow direct fiat purchases, a Bank of Korea study found. Researchers examined 12 currencies on Binance, including Brazil’s real, and tracked trading involving USDT and USDC. Stablecoin Demand Hits Currency Markets The findings linked dollar-stablecoin demand with foreign-exchange markets. When demand rises, market makers can sell local […] Read The Full Article Dollar Stab…