# Stablecoin Demand May Weaken Certain Local Currencies: Research Across 12 Currencies > A Bank of Korea study has revealed that direct stablecoin pairs can be associated with depreciation pressure on local currencies in some countries. When trading pairs for direct buying and… **A Bank of Korea study has revealed that direct stablecoin pairs can be associated with depreciation pressure on local currencies in some countries.** When trading pairs for direct buying and selling of dollar-backed stablecoins with local currency are opened, crypto demand can spill over into the foreign exchange market. According to research by Bank of Korea researchers Jihyun Kim and Sangheum Cho, this link strengthens particularly during the balancing of transactions by market makers. The initiation of direct transactions between local currencies like the Brazilian real and **USDT** and **USDC** on Binance was examined. When investors use local currency to buy stablecoins, market makers may sell the local currency and buy dollars to balance their positions. Thus, **stablecoin demand**, as a flow from crypto platforms, can also impact the exchange rate. ### Direct pairs may increase exchange rate pressure The study covered **12 currencies** with sufficient data between 2019 and 2025. Following the opening of direct local currency-stablecoin pairs, the premium—indicating that the local market price of stablecoins remained high relative to their dollar equivalent—declined by approximately **0.33 to 0.38 percentage points**. It was observed that when local prices rose above Binance prices, stablecoins tended to move from Binance to local exchanges. In a separate weekly test conducted for Brazil, a one-standard-deviation increase in Google searches for Bitcoin was found to be associated with a **0.118 percent depreciation** in the real and a **0.109 percentage point increase** in the stablecoin premium. According to Chainalysis data, stablecoin purchases with the won in Korea reached **$64 billion** in the 12-month period ending June 2025. However, since there is no direct won-stablecoin pair, this demand did not create a significant reaction in the exchange rate; the pressure was seen more in the stablecoin price premium in Korea. The researchers stated that if regulations allow for broader participation for corporations and foreign investors, more widespread use of the won abroad with deeper foreign exchange liquidity could help the market absorb potential shocks.