Real Weakens 0.12%, Stablecoin Exchange Rate Path Confirmed
In Brazil, the value of the real has fallen by approximately 0.12% against the dollar due to a shock in stablecoin demand. The Bank of Korea stated in its report "Stablecoin--FX Linkages" that the listing of fiat currency and dollar stablecoin trading pairs on global exchanges strengthens the connection between the foreign exchange market and the stablecoin market. When investors purchase dollar stablecoins directly with their local currency, intermediaries have an incentive to adjust the local currency in the foreign exchange market. This could lead to stablecoin demand translating into actual dollar demand. The Bank of Korea analyzed the introduction of trading pairs on Binance, which brought the dollar stablecoin premium closer to the spot exchange rate. In Brazil, an increase in Bitcoin search volume raised the stablecoin premium by 0.109 percentage points, causing the value of the real against the dollar to drop by about 0.12%. In contrast, South Korea could not trade stablecoins directly with the won, resulting only in a premium increase without a significant impact on the won-dollar exchange rate. The Bank of Korea emphasized that the establishment of a digital asset system should be reviewed alongside discussions on the internationalization of the won and the enhancement of liquidity in the foreign exchange market.
-- Price
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