Dollar-backed stablecoins can push local currencies lower, Bank of Korea study finds
Buying pressure in Binance-paired currencies correlates with local currency depreciation as market makers balance positions.
Source: CoinDesk
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DW NOTE
The Bank of Korea has discovered that when traders buy stablecoins paired with local currencies on Binance, those currencies often weaken — because market makers hedge their exposure by shorting the local unit. In other words, dollar-backed stablecoins don't just bypass capital controls; they create permanent selling pressure on the currencies they're supposedly just "paired" with. Every on-ramp is also an off-ramp for confidence.