Daily brief
Regulatory · South Korea · Sun 6 Sept · 3 min read
Stablecoins weaken Asian FX; BSP should be watching
What happened
The Bank of Korea published research finding that when traders buy USDT on Binance using local Asian currencies, those currencies tend to depreciate. The mechanism is indirect. Market makers who supply USDT must rebalance their books, and that rebalancing creates net selling pressure on the local currency side. This is not a theoretical model. It is drawn from observed trading data on Binance pairs.
The study is notable because it comes from a central bank, not an academic institution or a crypto-industry research arm. That changes its weight in policy conversations considerably.
Why it matters
Sources: CoinDesk
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