The Bank of Korea has published a study arguing that demand for dollar stablecoins may exert downward pressure on national currencies, particularly following the introduction of direct trading pairs with fiat money. The study was released on September 3, 2026, and covers 12 currencies, including the South Korean won. Notably, it highlights the significant impact of innovations by crypto exchange Binance, which introduced direct pairs with local currencies for stablecoins such as USDT and USDC.
According to the study, after Binance introduced the trading pairs, premiums on local stablecoins declined by 0.33–0.38 percentage points, indicating pressure on exchange rates. As the authors note, when investors gain direct access to dollar stablecoins through trading with local currency, it can create a situation in which local currencies are exposed to rate pressure. In contrast, in South Korea — where no direct won pair existed — rising stablecoin demand had no notable effect on the won's exchange rate; however, high premiums on local stablecoins were observed, reaching approximately $64 billion in the twelve months leading up to June 2025.
The study highlights an important shift in the structure of capital flows, linking stablecoin demand to currency markets in a way that may create new channels for influencing local currencies. The authors warn that digital liquidity and the accessibility of stablecoins through global platforms are exacerbating pressure on local currencies and could reshape the foreign exchange market. The Bank of Korea is also considering expanding stablecoin access for corporations and foreign investors, which analysts believe could strengthen the link between stablecoin demand and the won's exchange rate going forward.
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This material is prepared exclusively for informational purposes and does not constitute financial advice or a recommendation.